From 1940 to 1946, Hay became the temporary residence for the 16th Garrison Battalion.  The Battalion was charged with guarding up to 4,000 POW's and civilian internees in three separate camps. The isolation of Hay from the coast and major cities made it an ideal location for these internment camps.

The graves of five members of the 16th Garrison Battalion are honoured in this cemetery.  There are also six war dead commemorated within the general cemetery.

During 1942 an application was made by the Military authorities to the Board of Management of Hay Cemetery for land to be made available for a War Cemetery.

  Up until this time the Italian, Japanese and Jewish Internees and POW's were buried in the Hay Cemetery. During the 1960's all of the Japanese were removed to Cowra, the Italians to Murchison and the only Jewish grave still remains in the Hay General Cemetery.