The town was originally named Jordan's Crossing. The change of name for post office was gazetted in April 1881, although it had been reported as "Bundanoon township at Jordan's Crossing" when a meeting was held in 1870 to establish the public school.
Bundanoon History Group Established in the early 1980s, the Bundanoon History Group meets once a month in The Old Goods Shed, where its collection of photographs and written records are held.
Ban on bottled water In July 2009 "Bundy on Tap", a community initiative in Bundanoon,
declared itself opposed to the sale of
bottled drinking water on environmental grounds; local businesses instead committed themselves to filling re-usable bottles with tap water on request. The issue of bottled water was to protest against companies
Norlex and
Coca-Cola (that owns Australian bottled water brands
Neverfail and
Mount Franklin) extracting water from the town's groundwater.
2020 Bushfire In January 2020, the town was affected by a bushfire during the
2019–20 Australian bushfire season. Several homes were destroyed. == Notable residents ==