Inverleigh is situated on the country of the traditional custodians, the Wadurrung people (of the Kulin nation). Very little has been recorded of the original inhabitants of the area. The few records available are reports of conflict. In the summer of 1837-38 there was an incident at the Clyde Company (near Lullote) with two Aboriginal persons being killed and another injured and in 1839 George Russell reported natives sheep duffing. It has been speculated that the first European to arrive in Inverleigh was
William Buckley, but the first European known to have visited Inverleigh was the surveyor J.H. Wedge who arrived in 1835, probably naming the Leigh River after his Tasmanian farm '
Leighlands'. Very soon thereafter the Weatherboard Station land was taken up either by George Russell or by station manager David Fisher on behalf of The Derwent Company. It was claimed that the weatherboard homestead built by the station manager was Victoria's first weatherboard homestead. The name of the station is now commemorated by Weatherboard Road. Inverleigh Primary School began as a Presbyterian church school in 1865 and was taken over by the Victorian government in 1873. A residence was built at the school in 1912, while the school was extended in 1956. The school had 170 students in 2015. A second school, Murkeduke State School, opened south-west of the township on 10 September 1917 and closed on 2 August 1932. The Post Office opened on 11 October 1856. The
Prefabricated Iron Cottage at 24 Weatherboard Road, Inverleigh, is listed on the
Victorian Heritage Register for its historical and architectural significance. == The town today==