"There is no power for change greater than a community discovering what it cares about"
- Margaret J. Wheatley
The region surrounding this small farming community was first explored by Europeans in the 1840s; the town was surveyed in 1859. Its name is believed to derive from an Aboriginal word "gnarrallah", meaning waterhole or swampy place.
From the 1870s, red cedar, pine and beech logged from the Goomburra valley were milled at Allora.
From 1869, Allora had its own local government (initially Borough of Allora, from 1903 Town of Allora). In 1915, it was merged with the surrounding Shire of Clifton to create the Shire of Allora, which was administered from the Shire's offices at 78 Herbert Street in Allora. In 1994, the Shire of Allora was amalgamated into the Shire of Warwick.