Originally named "Beautiful Valley",[8] Wilmington is a farming community, known for sheep, wheat and barley, but more recently the temperature conditions and rainfall have contributed to the increasing popularity of the planting of olive groves.

Wilmington is a popular place to stay due to its proximity to the tourist areas of the Flinders Ranges, most notably Wilpena Pound.

Wilmington was established as a stop over route for grain and wool being delivered by horse and cart from Port Augusta on its way to Adelaide.

The historic Wilmington Coaching Stables on Fourth Street survive and are listed on the South Australian Heritage Register.

A town was surveyed in 1924 adjacent to the Terka railway siding six kilometres south of Wilmington, which was named from a nearby homestead.