Warra was the site of the first Government-owned and operated coal mine in Queensland. Originally commenced in 1914 by the Smokeless Coal Syndicate and then sold to the State Government in 1915. The mine supplied coal for the Western line locomotives. The venture was unsuccessful, and the mine closed in 1919 due to water seepage. The old mine entrance is marked by a silhouette structure.
In 1868 the Western railway line reached Dalby, and seven years later the government approved its extension north-westwards. The railway to Warra was opened two years later. The small rural town of Warra is located 50 km north-west of Dalby.