The community was established in the 1850s after gold was discovered in the district. Gold mining petered out in the 1930s, and the region's economy now depends on agriculture and tourism.
In Australian English, a tumbarumba is also a tmesis, due to the popularity of tmesis in the dialect.
The main regional centre in the Tumbarumba Shire is Tumbarumba which is a regional town situated 475 km south west of Sydney on the southern slopes of the Snowy Mountains.
In 2001 the population of the Tumbarumba Shire was 3,727, an increase of 1.4% since 1996.
Tumbarumba Shire has a population distribution close to the state and regional averages, however it is slightly more skewed to residents aged over 25 years.