The Old Bay Road, built by Jonker Afrikaner in the 1840s, led through Otjimbingwe, making the settlement an economic and cultural hub.

In 1854, copper was found in the nearby Khomas highlands and the Walwich Bay Mining Company established its offices in the city.

[4] Rhenish missionary Carl Hugo Hahn founded the Augustineum, a seminary and teacher training college in 1866.

[4] Under the control of Commissioner Dr. Heinrich Ernst Göring, the place became the seat of the colonial administration, the de facto capital, in the late 1880s.

The railway line from Windhoek and Swakopmund was completed in the early 1900s, bypassing Otjimbingwe, and the city greatly declined in size thereafter.

In the 19th century it was the seat of the Zeraua royal house and hosted several important meetings of the OvaHerero community.

[7] Herero paramount chieftain elections still take place at Otjimbingwe, hosted by the Ovaherero Traditional Authority.

[4] Da-Palm Senior Secondary School, is situated in the settlement on the banks of the Swakop River.