The name Taroom is said to be an aboriginal word for native fruit trees in the area.
Taroom is a major centre for the Queensland beef industry. Other industry includes prime hard wheat and forestry.
Taroom has a rare windmill of unusual design located on the banks of the Dawson River. The windmill was produced by the Steel Wings Company, in North Sydney between 1907 and 1911, one of only six models ever erected. The windmills comprise a steel frame and fan which turns to the wind between a bearing at the bottom and a swivel at the top, all supported by guy-wires. Along with a windmill in Jerilderie in the Riverina, the fully restored windmills are the only two known working examples in the world designed so their fan is contained and spins within the fully pivoting frame.