Cobargo was the Junction as the township first began to develop in the late 1860s at the junction of the Narira and Bredbatoura Creeks. The free settlers who had established themselves in the district were the Salways, Clugstones, Cullens, Motbeys, Wilsons, Allens,Gillespies, Nelsons as well as the Tarlintons. In 1870 an application for a public school was made, with residents promising to send 37 children to the proposed school. The school began operating in February 1871 with John OReilly as teacher. The township had a post office, store, school, hotel, church and blacksmith shops and several bushman huts. Dairy started in the 1870s with the butter being shipped to Sydney from Bermagui in kegs. Alex, the fourth son of W.D. Tarlinton, had a dairy and cheese making premises and made and sold butter and cheese before any factory existed in the Cobargo district.The Butter factory and Co-Operative were established in 1901; however, the factory was gutted by fire in 1926 and rebuilt later that year. By 1975 it was the only specialist butter factory in NSW and continued its butter production until November 1980 when it closed because of decreased cream supply, due to bulk milk production.