After being hired in 1903 by the Public Works Minister William Hall-Jones to investigate the hydro-electric potential of New Zealand, American electrical engineer L. M. Hancock identified 41 locations in 1904.

Climie estimated that a turbine capacity of 125 hp would be ample to supply present requirements within a 10 mi (16.09 km) radius of the proposed power station and that double this amount would meet the demand for many years, provided no large industry such as a freezing or lime works required a supply.

He estimated that the location had a potential total capacity of 1,500 hp[5] As work progressed the committee were invited by an offer in August 1922 to amalgamate their efforts with the new created Te Kuiti provisional power board.

Despite the withdraw of some of the potential customers who had initially expressed their support the Wairere Electric Power Board was established in January 1923.

Following acceptance, the board began the process of obtaining the required water, power and distribution licences, as well as polling the ratepayers in their area to raise a loan to pay for the works.

Climie had estimated that the construction of the power station and associated distribution network would cost £38,500 plus an additional amount to pay for the first three years of operation until sufficient customers could be connected.

The power station commenced commercial generation in December 1925, with 80 customers receiving a supply in Aria and Piopio and surrounding districts by January 1926.

The commissioning of the second generating unit (G2) allowed essential loads to be supplied while G1 to be taken out of service and overhauled after having been in practically continuous operation since its installation.

Taken out of service on the evening of 20 June 1939, G1 was dismantled overnight, transported up the hill from the power-house, from where all parts requiring repair were transported to Hamilton, where for the next two days it was refurbished and by the midnight on the following Tuesday last the machinery was returned to the power station and returned to service in time to carry the evening load on Thursday.

Following the death of the power station's operator in October 1942 the offer of his widow Isobel Gibbs to undertake his duties as a contribution to the war effort was accepted at a salary of £4 10 shillings, which was 25% less than her late husbands.

[4] Following the end of the Second World War the board hired Lloyd Mandeno to about improving the power station and its connection to the system.

He recommended that the board build a tie-line to connect the power station's output to the State Hydro-Electric Department's (SHD) system which would allow the board to supply its customers when the station was unable to supply all of its load as well as allowing them during periods of low load to sell any surplus generation from Wairere to the SHD.

[4] Between 1978 and 1981 the Wairere Power Station was upgraded at a cost of NZ$2 million and a new machine (G4) was added in 1981 which improved efficiency and maximized the use of the river flow.

Installation of a tipping gate which would minimize upstream impacts in low to medium flood events was completed in 2006.