[4] Formerly classified as an "Aboriginal area" under Taihoku Prefecture during Japanese rule, Wulai was organized as a rural township of Taipei County after the handover of Taiwan from Japan to the Republic of China in 1945.

In August 2015, Wulai was devastated by Typhoon Soudelor, wiping out several hotels and destroying hot springs in the region.

The course of the Nanshi River that passes through the district has since changed, with the riverbank eroded heavily by surging water.

[3] Heavy landslides were attributed to the overdevelopment of the mountain areas around the river which damaged the soil and watershed along the slope lands.

According to locals, bathing in the odorless hot springs can cure skin diseases (such as ringworm, eczema, and herpes).