The village was formerly known as Dry River (a name linked to the nearby Dry River) until the early 1900s, and was later known as "Quaamaa"; the present spelling was assigned in 1999.[2] Many of Quaama's important community buildings have a long history: the Quaama Public School was founded in 1877,[3] the School of Arts was established in 1902,[4] and the local Anglican church celebrated its centenary in 2007.[5] Quaama also has a general store with a post office, and a bushfire brigade.[4][6]
It is also the hometown of Australian international netball player Susan Pratley.[7]
In the bushfires of 2019 homes and rural properties and livestock were destroyed.