The Wudinna area was first settled by Europeans in 1861 when Robert George Standley lodged a claim for 10 sq. miles of land surrounding Weedna Hill ('weedna' later became changed to Wudinna which may be an Aboriginal word meaning 'the granite hill').
In 1896 W. A. Barns and A. J. Inkster acquired the Wudinna Hill lease and it was transferred to W. A. Barns in 1905. The property was sub-divided for agricultural development in 1912 and Barns retained the area adjacent to Mount Wudinna. In 1922 the South Australian government built a wall, drains, silt trap and tank on Mount Wudinna to conserve runoff water for use on nearby farms.
Wudinna township, which is larger than most of the wheatbelt towns in the area, was surveyed in 1915 and gazetted the following year. The General Store and Post Office were built in 1917. School was held in the local hall from 1919 until the local school was opened in 1927. Today it is a thriving centre servicing the surrounding wheat and sheep farmers.