Gold was discovered in the area in 1902 with the locality being known initially as New Edjudina. The townsite was surveyed following a request from the Mines Department and the surveyor suggested the name of Yarrie. The town was gazetted in 1903,[1] but no lots were sold so it was cancelled in 1904. A new townsite was surveyed and gazetted in 1908.
A State battery existed in the town in 1905 and treated parcels from many of the surrounding mines including Great Banjo, Wallaby Central, Sunday Gift and Holy Moses.[2] The battery was closed in 1931.[3]
The name Yarri or Yarrie is the Aboriginal name of the area but its meaning is not known.