The Town of Dannhauser was named after Renier Dannhauser, a German settler, who purchased the Farm: 'Palmietfontein', from the Natal Government, in 1872. The Dannhauser's are an old farming family that lived in that area. It was later proclaimed a Village in 1937.
Some of the largest coal-producing Mines surround it. Numerous Rivers flow through this Municipal area, the most important being the Ingagane and uMzinyathi Rivers and there are scenic landscapes in the Western portion of the Municipality.
The population of the Municipality is currently at 102 161 people (Census 2011). Population densities are highest in the Traditional Authority Areas in the North-Eastern portion of the Municipal Area and in the Town of Dannhauser itself. Contemporary Dannhauser covers five farms, namely: 'Tweediedale'; 'Gleneagles'; 'Rocky Branch'; 'Cornwall' and 'Klipkuil'. Durnacol housing is relatively cheap now as the coal mines there are redundant.
The Town consists of one main street, and the main shops are the post office, bank, pharmacy and some grocery and hardware stores.