Land was originally set aside for coal miners so that they could live close to the mines in 1898. A railway station named West Collie opened in the same year. The original townsite, also called West Collie, was gazetted in 1906. The original townsite was later discovered to be placed over commercially viable coal seams so a new townsite was founded in 1911 located a short distance from the original.
Allanson restored its original bush school in 2002 after it operated in the town from 1911 to 1989 before being closed. A book A History of Allanson: Our Little Bush School has been written about people's memories of the school and community.
- Australian Bureau of Statistics (27 June 2017). "Allanson (Locality)". 2016 Census QuickStats. Retrieved 22 April 2019.
- Western Australian Land Information Authority. "History of country town names – A". Retrieved 30 September 2008.
- "Collie Mail - Third edition for Allanson bush school book". 2003. Archived from the original on 5 August 2008. Retrieved 29 September 2008.