In 2007, it merged with the Town of Northam, almost tripling its population in the process from a previous size of 3,794 (ABS 2006).

Public meetings in December 2006 announced that the new council would be known as the Shire of Northam, and would come into existence on 1 July 2007, initially operated by a board of commissioners (two from each entity plus an independent chair).

[6] The Shire electors successfully petitioned for a referendum within their area, which was held on 28 April 2007.

Prior to the election, the Shire of Northam itself took the unusual step of asking its electors not to vote, in order to deny the referendum the 50% of voters needed to constitute a valid poll under Clause 10 of Schedule 2.1 of the Local Government Act 1995.

The amalgamation proceeded as planned and the first elections for seats in the new council were held in October 2007.