Situated on the Willochra Plains adjacent to Lower Flinders Ranges, Hammond was surveyed in 1897 and named by Governor Jervois after his son. The town was planned in the vision of Colonel Light with four terraces surrounded by a belt of parklands.
Unfortunately, it never grew big enough to spread to the parklands, but it did boast a population of 600 and had three churches, a butter factory and a farm implement factory. The great drought of the 1880s saw the town's population reduce dramatically, and today it is a virtual ghost town. Most buildings are private holiday homes such as the hotel, post office, school and station cottages.