The townsite of Witchcliffe is located in the south west agricultural region, 286 kilometres south southwest of Perth and nine kilometres south of Margaret River. In 1924 the government extended the railway to Witchcliffe, and at first selected the name Newralingup for the siding, but the name Narawary was approved. However, a Post Office named Witchcliffe had already been opened when the railway siding was named, and Narawary siding was renamed Witchcliffe in February 1925. Also in 1924 interest was shown in blocks of land at Witchcliffe Siding, and after investigation a scheme of subdivision was planned, lots surveyed, and a townsite gazetted in 1926.

The name Witchcliffe was first used in this district for Witchliffe Cave, the name being recorded by a surveyor in 1900. The name was probably given by the Bussell family who settled near here in the 1850's, naming their property "Wallcliffe House". Both the homestead and the cave are in an area of coastal cliffs, hence the "cliffe" part of the name.