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A townsite in the Midlands west of Moora, Dandaragan is an Aboriginal word which one source gives as meaning "good kangaroo country". The name was first recorded for a nearby spring and gully by a surveyor in 1850, although the name was sometimes spelt "Dandaraga".
Although a Townsite was gazetted here in 1958, the name has been in use since James Drummond took up a property here in 1850. Dandaragan was an important place on the road north, and a police station was opened here in the 1850's, a school in 1885 and a post office in 1896.