Gold was initially discovered in the area in 1892, with the place first called the Sore Foot Rush, as a result of the limping prospectors who arrived on news of the discovery.

Deep leads were found in 1894, 1898 and 1901 and some of the mines that existed in the area were Paddington Consuls, Mt Corlic, Star of WA, and Pakeha.

The Paddington Consuls mine was by far the largest and employed over 400 men at its peak until it went into liquidation in 1901.

A police station and court were established in town in 1899 with the lock up possibly having come from Black Flag; the police quarters were delivered from Black Flag in 1900 with the stables being brought from Broad Arrow in 1901.

Gudarra, under the name of Paddington, was a stop on the Kalgoorlie to Leonora railway line but, while the railway line is still in operation, the town is now longer shown as a stop on contemporary maps.