The town developed around a railway siding and was proclaimed in 1913 on farmland. It was named after Bastiaan Koster, the Dutch owner, a native of Rotterdam, who settled on the farm in 1860.
Adventure And Sport
Koperfontein Hikes: The Koperfontein day hiking area in the vicinity of Derby has a central hut and a campsite.
Koster Dam: The Koster Dam resort lies about 20 km from town. It offers caravan facilities with power points, a swimming pool, ablution blocks and barbecue facilities. Anglers often catch carp, yellowfish and barbel here.
Caves: Several large caves can be explored in the area, among them the Swartland, Rietpan and Oom Paul caves.