The history of Whataroa is tied to the gold rush settlement of
Ōkārito on the coast, which boomed in 1865–66. Ōkārito was the third-largest port in Westland at the time, supplying other coastal gold-mining settlements, and the inland camps at
Waiho and
the Forks. By the end of the 1860s most claims had been worked out, and the district's population had dropped from 4500 to 650. Surveyors had explored the Whataroa area around 1860, and
Gerhard Mueller spent three months exploring the inland area in 1866, venturing to Lake Rotokino with his Māori guides and becoming the first European to see the
white heron nesting colony on the
Waitangiroto River. In the 1870s Harry Friend, a butcher from Ōkārito, began running cattle on the Whataroa flats to supply the gold miners. The area between the
Whataroa River and the
Waitangitāhuna (called the Waitangi or Waitangitaona at the time) was
tōtara forest, swampland, and
pakihi clearings, all suitable for grazing. More cattle farmers followed, and an inland track was cleared past the Forks and
Lake Wahapo to the interior. After the opening of the road connecting Haast with Otago over the
Haast Pass on 12 November 1960, it was possible to use trucks to take stock south to
Cromwell, and the last mob of cattle was driven north to Whataroa in 1961. In the 1930s a new post office was built in what is now the centre of town, at the junction of Main South and Flat roads. Much later it moved to a modern post office building opposite the school. In 1937 the Arnold family set up a garage in the former dairy factory with a single truck, and built a new garage in 1945, setting up a freight and transport company that became one of the largest on the West Coast, before merging with Ross Transport in 1972 to become Trans West. At one point the garage supplied electricity for the township, which had no public supply. After 1945 clearing and draining of the Whataroa flats accelerated, with better farm machinery, top-dressing of fertiliser, and flood control. A telephone exchange,
Bank of New Zealand,
RSA Hall, and War Memorial rooms were built. A 1959 report noted Whataroa was "primarily a cattle and sheep grazing area, there being only a limited amount of dairying," ==Geography==