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Binnaway is a small town located on the Castlereagh River in central western New South Wales near the larger centre of Coonabarabran, which is about 35 kilometres to the north. In 2006, the town had a population of 495 people. The road linking these two towns closely follows the meandering Castlereagh River. There are many pleasant areas to stop beside the road and on the river banks to have a picnic. Binnaway is also located near the similarly sized small town of Mendooran. Following local government amalgamation, the town is now located in the Warrumbungle Shire Council area which is headquartered at Coonabarabran.
The name Binnaway may derive from an Aboriginal term which means peppermint tree. The first European landholder in the areas was Charles Naseby who claimed 50 acres (200,000 m²) in 1869. The village of Binnaway was initially set up on his land with a plan for the town being laid out in 1876. A street in the town is named Renshaw Street after the former Premier of New South Wales Jack Renshaw who grew up and went to school in the area.
A film called The Shiralee based on a D'Arcy Niland novel set in the Australian bush, which starred Peter Finch, was filmed around Binnaway in the 1950s.
Binnaway was once a major railway town and contained a large wheat receival area. The railway still continues to operate through the town between Dubbo and the Binaway to Werris Creek line.
Binnaway was also home to Frank Bourke's famous White Rose Orchestra and the Big Piano.