The township of Yalloum was established in 1921 to provide accommodation for the work force on the sites of the power station and open cut which were to become the basis of Victoria's electricity industry. A company town, Yallourn flourished, and in its heyday in the 1950s the township had a population in excess of 5500 residents.
However the town was sited over a valuable coal field. In the 1960s, studies conducted by the State Electricity Commission indicated that excavation of this coal as a continuing development of Yalloum Open Cut was the optimum choice to meet the growing energy needs of Victoria. Operation in what became known as the Township Field commenced in 1979 and the completion of the overburden stripping was successfully achieved on target in 1991.