The area known as Camden South is established on land originally home to the Dharawal and Gundangarra people and acquired by the Macarthur family as part of their extensive land grant in the early 1800s. The area supported the farming of wheat, sheep and dairy cattle. An original house Murrandah is now known as Camden House Nursing Home.
The expansion in population in Camden in the 1960s and 1970s saw the establishment of two large housing areas to the east and west of the Hume Highway. These were known as Elizabeth Macarthur, honouring the contribution to the development of agriculture by Elizabeth, wife of John Macarthur, and Ponderosa. The new areas were originally collectively known as Benkennie but this later changed to Camden South.
The 3.4km Nepean Cycleway links Camden South to the township of Camden passing under the Camden bypass and along the Nepean River. The flat lands of Camden South are home to a number of sporting fields for local soccer and rugby clubs. Camden Valley Inn is a landmark on the old Hume Highway and a popular gathering place for local people.