Dalwallinu is a small crossroads Wheatbelt production town that is encounted when heading north to Newman. Agriculture and supporting industries are the town's primary economic activities. The town is also the first town on The ‘Wildflower Way’, a world-famous Western Australian tourist route which stretches north to the north of the state.
The name of the town comes from the Aboriginal word that means "place to wait a while" or possible "goodlands". The first inhabitants of the area were nomadic and had no set boundaries and the area was mostly used for hunting and gathering. The Badima people lived in the northern areas of the shire and the Galamaia peoples inhabited the southern areas.
The first Europeans to arrive were Benedictine monks who came from New Norcia to graze their sheep on the pastoral leases that they had taken up. The first settlers arrived, hoping to develop the lands for wheat, in 1907. The region was surveyed in 1909 and then opened for selection in 1910 with crops being planted shortly afterward.