The name "Dowerin" is taken from the aboriginal word "Daren" that was given to a series of lakes some 8 kilometers south of the town that were established near a soak or water hole now known as "Tin Dog Creek". This was a resting place and watering hole for travelers and prospectors on their way to the Goldfields and so named because of the accumulation of empty food containers left behind. Most of their food supply came in tins and the meat content was referred to as "tin dog".

The first settlement for agriculture was in 1897 and the town was not established until 1906 when the railway line was extended from Goomalling. The town grew rapidly from that point, with the first store opening in 1906 and in a short time was able to cater for most of the settlers’ needs.

The earliest public buildings were at Dowerin Lakes or Old Dowerin, as it had been the expectations of the settlers that this site, 8 km south was to be the townsite. These buildings were a school and a Methodist Church.

The first Road Board was formed in 1912. The area was previously administered by the Goomalling Road Board and the new Dowerin Road Board covered a vast area including Wyalkatchem and Koorda. The Districts in the Dowerin area, at present include Amery, Booralaming, Dowerin Lakes (Daren), Doodarding, Ejanding, Hindmarsh, Koombekine, Manmanning, Minnivale, Moonijin, Namelcatchem, Nambling, Ucarty and Watercarrin.