Tarras and its surrounding mountains and valleys were familiar to Ngāi Tahu from the mid 18th century. The area was plentiful in long-fin eels, a taoka (treasure) species for Kāi Tahu and a key component of tribal identity.

​

To the north of the current village site, a mahika kai (working the food) route passed over the Lindis Pass and Grandview to Hāwea, ultimately linking the Waitaki River to the West Coast. A second route followed the current Thompson Gorge Road, a safer and drier path to use in bad weather.

 

Bendigo retained significant traces of these early travellers into the early goldmining days, from pounamu (greenstone) weapons and implements in the Bendigo Creek to evidence of broken moa eggs. A tõtara paddle, found in cave behind Bendigo, is now part of the Otago Museum Collection.

 

The Ngāi Tahu land claims, contesting the 1848 Kemp Purchase of the land by the British Crown, were settled in 1997 and legislated in 1998 through the Ngāi Tahu Claims Settlement Act.