This town is located in north eastern Tasmania, 27 kilometres from the coastal town of St Helens and 73 kilometres from Scottsdale. One of the first settlers in the area was George Cotton in 1875; however due to the heavy rainfall and dense forests, settlement of the area was an arduous task. The demise of the tin mines in nearby Lottah meant that pioneers began to move into the area around Pyengana, with many settlers being of Swedish and German descent.

The first State school in the area was opened in 1889. An Anglican Church was established and opened by Bishop Montgomery in 1894. The first butter manufacturing factory in the area began operations in 1895, with a cheese factory being opened in 1903. Woodchopping competitions began in 1898 and have continued ever since, thus highlighting the importance of forestry in the area. In 1900 a blacksmith's shop was established by Fred Bailey, from where he served the citizens of Pyengana for 12 years before moving to St Helens to open a wheelwright and blacksmith's operation.

In 1917 a Methodist Church came to the town from Lottah, and was soon followed by the Catholic Church following the closure of the Anchor mine in Lottah in the 1920s. A huge flood in 1929 devastated the farms of the area. In 1930 the Siamese Tin Mining Company prospected for tin in the Columba Falls area and established a mine in that area. Mining was short lived due to low world market prices and the beginning of the Second World War.

Tin mining was the prominent activity in the early days of the town, but this has given way to the dairy farming industry, and several cheese making industries are also located in the area. Forestry is another important activity in the region today.

Fishermen will find excellent trout fishing sites all along the North and South George Rivers which meander through the valley. The beautiful St Columba Falls in the St Columba Falls State Reserve are located 12 kilometres from the village and are worth seeing. A 20 minute walking track leads to the base of the falls, and picnic facilities are available.

Visit the "Pub in the Paddock" for cool beer, accommodation and light counter lunches; the unusual site for the pub is enhanced by a beer swilling pig !! Visit Healey's Pyengana Cheese Factory, sample the homemade cheeses and view the manufacturing process.

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