The first settlers, drovers, came to Bealiba in 1840 bringing with them hundreds of cattle and sheep. Bealiba was first settled in 1845, among those people who did, were John and James Cochrane who were mainly responsible for establishing the town. Their family name was used for the gold diggings known as Cochrane until 1856 when it was renamed Bealiba.

Gold was discovered in 1856. As many as 12,000 diggers were on the fields for 18 months until it petered out and the diggers were attracted elsewhere.

The railway was extended from Dunolly in 1878 and the district settled down to become a busy rural area with a population of 2,000 until World War I.