The townsite of Coorow was gazetted in 1893. Its name is derived from the Aboriginal name of a nearby spring, first recorded in 1872. The meaning of the name may be from the word "Curro", which is the Aboriginal word for a variety of Portulaca; another source gives it as "many mists".[2]
The town experienced some flooding in 1918 following a deluge of 2.53 inches (64 mm) of rain overnight. The Moore River broke its banks and caused much more severe flooding downstream at Moora.[3]
After rapid growth through the early 1920s local settlers began to seek obtaining a hotel licence for the town in 1927.[4] The licence was granted in 1929 to Alexander Gloster who put forward a tender of £1,750, and submitted his plans for approval.[5]
The hotel was erected at a cost of £13,000 and constructed of cement blocks and brick. The two storey building held fifteen rooms for accommodation on the top floor and more accommodation along with a kitchen, bar, commercial room, saloon and laundry on the ground floor. The building was sewered, with hot and cold water to all rooms, and had an electrical plant installed.[6]
The town was flooded in 1932 following torrential rains in the area. The town was left under water for at least a day but the water flowed rapidly away down the Moore River. It was feared at one point that the town dam would burst from the pressure.[8] Roads were cut from washaways and the streets and flooded buildings were left deep in mud with some stock losses, mostly sheep, being reported.[9]