Likely named after the town of the same name in Scotland, the community grew around the Ballater School District which was established in 1926. The original Ballater in Aberdeen (now Grampian), in east-central Scotland, has at least two meanings. It may mean "broom" land. Broom is a yellow-flowered shrub predominantly associated with Scotland. The name may also mean "village on a sloping hill, or hillside". The post office opened in 1937 with the first postmaster being Fred Caron.

Approximately 20 km south-west of McLennan.