The village was proclaimed on 20 March 1885 and the village boundaries were formally notified in NSW government records on 25 November 1893. The village has a population of 323, with 489 people in the area.
Deepwater is located 650 kilometres north west of Sydney on the New England Highway, the main inland route between Sydney, and Brisbane, the Queensland State capital. It was a station on the Main Northern Railway Line (now closed).
The village is on the northern bank of the Deepwater River, a tributary of the Mole River. Deepwater Station was occupied in 1839 for the Windeyer brothers and by 1848 it covered 60,000 acres. Descendants of this district pioneer family still own the property.
In the past dairying, tin mining and timber were industries that contributed to the economy and prosperity of the district, supporting its growth and development. Now, the district is an agricultural area with the main pursuits being wool, fat lamb and beef cattle production. There is also a small but thriving rural based industrial area.
Deepwater has a Supermarket, Post Office, Petrol Station/Roadhouse with mechanic, Cafe and Bakery.
The Deepwater River, which runs east/west at the southern entrance to the village is a good place to fish for Murray Cod and Golden Perch and is also a designated trout stream.
The area is a boon for the keen fossicker with deposits of all varieties of Quartz Crystal and Topaz as well as Beryl, Sapphires and many other minerals available in the area.