In the late 1890s, a siding on the Great Southern Railway called simply "Water Tank" was established here, and the name Yornaning was finally arrived at in 1905 after several renamings. A townsite was gazetted adjacent to the siding in 1907, and maintenance workers for the railway were encouraged to move there. The siding was important as a major water-taking stop for the steam engines passing through - an average of 30 passenger and freight trains passed through per week.
The railway's decline brought an end to the town's progress and all that remains today is the wheat silo, community hall and one or two buildings.