Early settler James MacLaren took up a pastoral run in the area in 1863 and named it Blair Athol after the village Blair Atholl, the location of Blair Castle of the Duke of Atholl in Scotland.[1] While sinking a well in 1864, he discovered coal on the property.[2]
By 1873, early shafts were dug, revealing extensive seams of coal. At that time, around 100 people were living in the town and there was a hotel, although no township had been officially surveyed.[3] The town was surveyed in 1878.[4]
Blair Athol Provisional School opened on 6 November 1893. It became a State School in 1909.[5][6]
Blair Athol Post Office opened on 1 July 1927 (a receiving office had been open from 1910) and closed in 1966.[7]
By the 1970s, it became apparent that there were significant coal seams under the town. In order to construct an open cut mine, the town had to be sacrificed.[2]
In 1981 a reunion was held at the community hall to mark the final end of the town, following which all of the town was demolished. Only the cemetery remains.[2]