Nangwarry is one of the forestry industry townships and has its Nangwarry Forestry and Logging Museum which is an iconic legacy to the growing timber industry. Nangwarry is situated 20kms south of Penola on the Riddoch Highway. Nangwarry is closest to Penola; it is 70kms east of Millicent via Penola, and 100kms southeast of Beachport via Millicent and Penola.
The main industries are forestry (Radiata pine), transport.
In 1939 a power station was erected to supply a timber mill, which was built in 1940. The town grew out of a demand for housing for the laborers who travelled to the area for work, many in the forest. The Government established homes, schools and shops. Migrants made up the biggest percentage of the population in what was to become a multicultural community.