 European settlers was first inhabited Toolangi in the 1860s by paling splitters and then timber cutters, who camped deep in the bush.They were attracted by the huge stands of mountain ash ("Eucalyptus regnans"), a tree that splits easily, and the messmate timber, which proved durable as a building material.Toolangi Post Office opened on 1 August 1900 and closed in 1974.