Blayney was gazetted 26 September, 1843 by Governor Gipps. The first European occupation of this area dates back to 1821 with the first sighting by Surveyor George Evans in 1813 whilst on his expedition which discovered the Bathurst Plains. He noted three hills to the south which he named The Three Brothers
Situated in the valley of the Belubula River, Blayney was originally sited at King's Plains which is about 8 kilometres closer to Bathurst. However this site proved unsuitable so the Blayney site of today was chosen. Originally allocated for farming, the area also began to prosper from gold, copper and iron.
Blayney Shire has gradually seen change from its agricultural base - moving more into industry and mining.
Blayney has a pet food plant - Nestle Purina (Friskies Pet Care a division of Nestle) which exports pet food to Asia and the Pacific, and a Cold Store Warehouse centre. In 1994, Blayney became home to Australia's largest inland container terminal, which is situated beside the railway station.