While the name Innaloo was adopted in 1927, it was originally referred to as Njookenbooroo, believed to be derived from the Aboriginal name for Herdsman Lake or a nearby swamp.
The area now known as Innaloo was originally part of land bought by Thomas Mews in 1831 and, while subdivision in northern Innaloo was approved in 1898, development lagged for many years. The southern section was subdivided in 1916 but again demand was not high. A map drafted in the early 1920s indicates only 10 houses had been built in the region with the majority of land used for grazing.
In 1915, the Education Department acquired land in the area and built the Njookenbooroo School on the north-east corner of Odin Road but the names of the school and post office were changed in 1927, at the request of the local progress association.