Cobargo was known as 'The Junction' in the late 1860s as it was located at the junction of the Narira and Bredbatoura Creeks. A school opened in 1871 and by that year the village had a post office, store, hotel, church and blacksmith shops. Development gained pace following the construction of a bridge over the Narira Creek in 1882 and improvement of the coast road in the 1880s. By the 1890s the town was large enough to sustain a local newspaper, the Cobargo Watch. A butter factory was established in 1901 and continued butter production until 1980. In 1903 a branch of the Bank of New South Wales was opened. The office built in 1917 on the corner of Bermagui Road operated until 1997.