Donnelly River Mill and Town Site precinct is located on the Donnelly River, to the South West of Bridgetown and northwest of Manjimup in the southwest region of Western Australia.

Timber cutting was one of the first industries to be established following the European settlement of the Swan River colony. Following the granting of the first timber concessions in 1871, the number steadily increased. Largely in response to local demand for timber for mining and railway construction.

Brothers Robert and Arthur Bunning entered the Western Australian timber industry in 1886, and established mills throughout the outer metropolitan area and southwest.

The post World War Two housing boom placed considerable pressure on the local timber industry and Donnelly River was one of several large mills to open in the late 1940’s and 1950’s.

Pegging out of the Donnelly River Mill and Town site commenced on Anzac Day 1948. The State Housing Commission then built 29 houses at Donnelly River during 1950/51.

Construction of the mill commenced under the supervision of Henry Martin. The first log was cut at the mill on 13 September 1950 (apparently Charles Bunning insisted that the Mill had to be cutting by that date). However, it was not ready for production for another six months. Two steam locomotives drove the mill and its riverside location was chosen for the availability of water. The mill, which processed mainly Karri, was powered by a single steam engine.

The Mill was officially opened on 24 April 1951 by acting premier, A F Watts MLA.

Families were accommodated in temporary houses built on the western side of the Mill known as Martin’s corner.

Following an approach from the Western Australian Tree Society in 1958, a giant karri from Donnelly River was transported to Kings Park by Donnelly Mill.

In early 1977, Bunnings announced that it would close Donnelly River Mill and Tone River Mill. The closure was marked by a function attended by about 300 past and present employees and guests.