Tarcoola Post Office opened on 18 August 1900 and the town was proclaimed on 21 February 1901. The name was taken from the nearby Tarcoola Goldfields, which in turn had been named after Tarcoola the winner of the 1893 Melbourne cup horse race, the year gold was discovered in the area. There were 2000 people living on the gold fields by 1900 and there was even a town plan surveyed just north of the junction in 1915. In the present, only one family remains there.
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