It is suggested that the name Ramco comes from Bogorampko Flat near which the settlement was established. In that name, 'bogo' means dead, a spirit or a giant from mythology and 'rampk' means going towards or referring to the route used by mythical creatures to get to the river for water at night. Ramco was the name used for a post office near Waikerie from April 1896. Ramco was founded as a village settlement in July 1894 by 18 disgruntled settlers from the Waikerie village settlement. After their experience at Waikerie, the Ramco villagers decided that their settlement would work on more individualistic lines and each settler would occupy some land of his own. In 1898, the Ramco settlers installed their second pump and increased their irrigation capacity considerably. However, the individualism of the settlers, their inexperience in agricultural matters and the harsh conditions contributed to the end of the village settlement. The Ramco village association was dissolved in July 1903 and settlers who remained were allotted their own land. Subsequently, they were encouraged by Samuel McIntosh to begin planting commercially. Ramco was incorporated into the Waikerie Irrigation Area in 1912.