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Tara was named after Tara, Ireland. The community is located on the historic Saugeen Trail which connected Fort Erie with Goderich. In 1855 a railway point called "Tara Siding" was established by the building of the Stratford and Huron Railway (later part of Canadian National Railways). It became an important shipping point for grain from surrounding farms in Arran Township and Bruce County as well as lumber products from local sawmills. A post office opened in 1856 but closed later that year due to lack of business; it reopened again in 1863, only to close permanently two years later when mail service moved to nearby Elderslie Station (now Arran).