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Carnamah, gazetted a townsite in 1913, is located in the midlands wheatbelt area, 23 kilometres southeast of Three Springs and 307 kilometres north of Perth. It is named after a pastoral property established by Duncan Macpherson in this location in the late 1860s. A telegraph station was established here in 1873, and is referred to in 1876 by the famous explorer Ernest Giles. Giles spells it "Cornamah" in his book, but "Carnamah" on his map. The main industry in the town is wheat forming with the town being a cooperative bulk handling receival site.
Carnamah is the principal town of the Shire of Carnamah. As one of two major towns in the Shire, it provides the surrounding area with retail services and outlets, a high school, various sporting grounds and the Carnamah Historical Society Museum, which showcases the history and growth of agriculture over the last 100 years. Tourism has increased over the years in the area due to the wildflowers that bloom from August through to October, which led to the development of more accommodation and the Tourist Information Centre.