The first settlement was originally known as Buckley's Crossing after Edward Buckley who established a farm near the river crossing in 1832. It was renamed Barnes Crossing in 1848, by which time it had become an important waypoint on the stock route between Gippsland in Victoria and the Snowy Mountains in New South Wales. In 1874 the town was formally surveyed and named Dalgety after the maiden name of the wife of surveyor J. R. Campbell. Like the founder of Dalgety and Company she was a grandchild of a Colonel Alexander Dalgety.