The traditional legend is that two local Aboriginal tribes were arguing over the ownership of the hill which was located by the sea.

Pannawonica is one of a number of remote-area iron-ore-mining towns built throughout the Pilbara to house workers operating open-cut mines and the loading of ore trains.

Pannawonica is home to more than 1000 people: Rio Tinto Iron Ore employee families, staff on fly-in fly-out ('fifo') roster from Perth, and those involved in support services (49% residential, 51% FIFO).

[5] The town's facilities include a post office, supermarket, milk-bar, pub, a public swimming pool, sports fields, police station, petrol station, primary school, tavern bistro, gym and a free drive-in cinema with takeaway facility, free movies show on Friday and Sunday nights.

The annual Pannawonica Robe River Rodeo, in September, attracts an average of 1500 people from all over Australia.

Funds raised are distributed to many organisations including the Royal Flying Doctor Service, local school and other volunteer-based groups.

Mesa is a Spanish word that means 'table', which describes the appearance of the flat-topped iron-ore plateaus standing high above the surrounding ground, remnants of terrain carved by an ancient river system.