Wallaroo was surveyed in late 1860 and named after W. W. Hughes' Wallaroo Station, located east of the smelting works site.

This site was established in 1861 following the discovery of copper ore at nearby Wallaroo Mine (Kadina) and Moonta.

The smelters were responsible for the development of the town and with its modern deep water jetty, large grain silos, bulk loading facilities and superphosphate production Wallaroo is now the major port on the western coast of the Peninsula and also one of the busiest ports in South Australia.