The history of this remote settlement in Queensland dates back to the 1870s. Originally, the site was known as "Norman Mouth," as it was situated where the Norman River flows into the Gulf of Carpentaria. The modern name Karumba was established later; it is believed to be of Aboriginal origin, although the exact meaning of the word is still a subject of debate among researchers.
The transformation of the small settlement into an important transport hub was driven by several key factors:
- Gold Rush: The discovery of deposits in neighboring Croydon in the 1880s made Karumba the main maritime gateway for delivering supplies and construction materials to prospectors.
- Telegraph Connection: The construction of a telegraph station in the 1870s connected this isolated region with the rest of Australia.
The town's economy changed with the eras. After the depletion of gold reserves, the port lost its former significance, but in the 1930s, it found a new role as a base for flying boats. Seaplanes of the Empire Air Mail Scheme landed here, providing mail and passenger connections between Australia and Great Britain. In the mid-20th century, the town repurposed itself as a center for commercial fishing and prawn harvesting, which remains the foundation of its life today.