 Reporting the rich soils in the area, settlers began taking up land in 1845 and by 1850 a town had been established at a popular camping spot near the Dawson River.Originally named "Bonners Knob" the town was renamed Taroom, possibly after the nearby Taroom cattle station, on completion of the first post office in 1856.The name Taroom is said to be an aboriginal Waka word "tarum" meaning "wild lime".