The local railway station was opened on the Goulburn Valley railway in 1888,[3] but today does not see regular passenger services. Katunga, similar to much of the surrounding area, is based on agriculture, including dairy production. Bizarrely, the town had two state primary schools with around 90 students at Katunga primary and 7 students at Katunga South primary just 2 km away. Katunga South closed at the end of 2021 after the last 3 students left.