 The Donnelly River site was first used as a timber mill by the Wheatley family in 1912 to cut cross arms and telegraph poles, but it closed after two years.In 1947, Bunnings made plans to build a new mill on the Wheatley site to work timber in new permit areas held by the company, with a steam engine purchased from Onkaparinga Woollen Mills in South Australia - Donnelly River became the only steam-driven mill in the South West, officially opening in 1951.The mill and town subsequently provided employment and family homes for a large community for nearly 30 years - many of these families have remained in the district.