The name in Afrikaans means "Iron Fountain".The town started out when the farm 'Yzerfontein' was bought by the Katz-family in the 1930s.

The main sources of income are tourism (especially during the wildflower season from August to October), mining and fishing.

Yzerfontein is known for its Sixteen Mile Beach, stretching north from the main beach of the town, to the West Coast National Park, which borders the town.

Dassen Island, another nature reserve, is about 10 km offshore.

Yzerfontein is the landing point for the ACE and WACS submarine communications cables.