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Warragamba is a town in New South Wales, Australia, in Wollondilly Shire. Located on the eastern edge of the Blue Mountains, Warragamba is one and a half hour's drive west of Sydney. Originally constructed as a workers' settlement during the construction of Warragamba Dam, Sydney's primary water source, in the 1940s the modern town of Warragamba remains on the same site adjacent the dam. The town was built from scratch, including homes, shops, schools and other facilities. On completion of the dam being built many workers bought their homes from the Water Board and stayed on in the Warragamba township.