It is named after an English family named Pennington, who began farming here in the late 19th century. Sir Frank Reynolds, the sugar magnate, bought part of the farm and developed a country home which he called Umdoni Park after the mdoni (water myrtle) trees in the area.

Sir Frank built a seaside residence for South African prime ministers as a sign of his admiration for the first premier of the Union, General Louis Botha. King George VI of Britain was offered use of this home when his health was failing in 1952, and was planning to visit it just before he died.The town is set on a hillside looking down onto the Indian Ocean.

The railway runs between the town and the beach (as it does all the way along this coast from Durban to Port Shepstone, but trains are few and cause little problem for visitors.

Well served with roads as the motorway N2 runs down from Durban connecting with the airport and passing Pennington.