Before it was settled as a town the Yalgoo area was used as grazing land for European settlers including the Morrissey and Broad families.Flocks of sheep were herded onto the rich pastures during the wet growing season and driven back to coastal properties for shearing before summer.Yalgoo's importance declined in the years after World War II after the forging of an all-weather road between Wubin and Paynes Find, across Lake Moore.[2] In 1921-22 the priest-architect and parish priest of Yalgoo (as well as of Mullewa), Monsignor John Hawes, designed and built the Dominican convent school and chapel of St Hyacinth: Yalgoo children attended the school until it was closed for lack of pupils in 1950.An alternative view is that it is derived from the Yalguru bush, which abounds in the area and has blood red sap.