It is the largest community in the rugged, forested Catlins area, close to the border with Southland, some 35 km (22 mi) south of Balclutha on the Southern Scenic Route.

The railway ultimately terminated in Tahakopa, but as traffic declined on the line in its later years, the Tuesday freight train (one of four per week) ran only as far as Owaka after 1958.

In November 1991, 15-year old Kylie Smith was abducted in Owaka and was raped and murdered by Paul Bailey.

Bailey pled guilty in 1992, and was subsequently jailed for life, with a non-parole period of 10 years.

[6] Bailey's offending had a substantial impact on the town at the time: the local pastor, who had assisted Bailey in gaining employment in Owaka, had his house vandalised, and a lynch mob threatened to burn down his church, whilst that same mob burned down Bailey's house.