It was named by, and after, W H Westerway (1851–1930), the main resident of the town who was responsible for many developments in the area.

He built an accommodation house and store where Coniston siding is now, owned the Coffee Palace at Glenora and started a livery business driving tourists to Russell Falls.

At the time of the 1934 bushfires, the original Westerway Hall became a temporary hospital and in 1939 a recruitment office for enlistees.

Westerway railway station was important as it was the starting point for the pack horse journey to the long abandoned Adamsfield osmiridium mine.

Route C608 (Ellendale Road) starts at an intersection with B91 and runs north-west until it exits.