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The townsite of Allanson is located 196 kilometres south of Perth and just six kilometres west of Collie. It is in the Collie Coalfields, and land was set aside for a townsite here in 1898, in accordance with government policy of providing land for coal miners close to the mine sites. A railway station named West Collie was opened in 1898, and when a townsite was gazetted in 1906 it was also named West Collie. However, much of the original townsite land was underlaid by coal seams, and little land was released. A new subdivision was made in 1911, and the townsite boundaries changed and gazetted 1912. The name was changed to Allanson in 1916, and it is believed to be named after Arthur Allan Wilson, the MLA for Collie from 1908 to 1947.