The township of Oontoo once existed in the area along the banks of the Cooper Creek.[3] The Queensland Government offered approximately 70 town lots for sale on 11 April 1886.[4] A border customs post was established at Oontoo in 1886 on a 1 square mile (259 ha) piece of land resumed from Nappa Merrie cattle station.[5] The post was created to collect taxes from drovers who crossed to Queensland border travelling down Strzelecki Creek.[6]
The first customs officer was Mr Ivory who arrived in 1886 and lived in a tent until a house was completed the following year. In 1887 the post was also used as a depot for materials used in the construction of the rabbit proof fence.[5]
A shanty public house followed soon afterward with a more substantial stone hotel built by Thomas Costello in 1888. The hotel had eight rooms, kitchen, stables and a store.[5] Several race meetings were held in the town starting in 1888.[7] The town soon boasted a store, doctor and school.[3]
Severe flooding occurred in 1891 with Cooper Creek breaking its banks after 4.5 inches (114 mm) of rain fell in the area in January.[8]
By 1897 the population had shrunk to 14.[3]
The customs post was closed in 1902.[9]