the town of katherine is an established residential township with a commercial area and rural areas on the outskirts of the town. the original inhabitants of the town were the dagoman and jawoyn aboriginal people. european settlement of the area dates from 1871, following the construction of the overland telegraph line. growth of the town began to start from 1926, following the opening of the railway line. the township grew around the railway line. the most significant development occurred in the post-war years, aided by growth in the tourism industry.