UNDALYA, or WATERHOLES, (Cos. Gawler and Stanley) is a postal township, situated on the river Wakefield, and lying in the midst of an agricultural district in which wheat is grown in large quantities. The nearest places are Auburn, 4 miles N., and Rhynie, 5 miles S., there being communication by mail car daily. With Adelaide, 75 miles S.; the communication is by mail coach to Kapunda, and thence by rail. Undalya has 1 hotel -the Undalya- a post office, and a fine church. There ia a bridge over the river Wakefield at the township, by which the main North road crosses. The surrounding country is elevated and somewhat hilly at a little distance from the river. The population numbers about 80 persons.
The name given by the Aborigines to a waterhole in the River Wakefield, 10 km west of Saddleworth, while the surrounding district was known as kercoonda, meaning 'camp near water'. The village was created by William Haysom on section 285 and, in 1859 he sold one quarter of an acre for a chapel and school; in 1864, he cut up three blocks of about half an acre for residential purposes. A year later it was reported that:
A beautiful Catholic chapel has been built and opened free of debt; a neat store built and opened; and two schools under the auspices of the Board of Education; a hotel is now in progress which will be a boon to teamsters there being good paddock accommodation, which Auburn at present is deficient of. This prosperity and advancement - all in about twelve months - is very cheering...
In 1872, the school was conducted in a chapel by Herman G. Allert with 41 enrolled pupils; it opened in 1860 and closed in 1955.