On 1 April 1910 the Post Department changed the name from Kaikora North to Otane,[6] to avoid confusion with Kaikōura.[7] The name of the railway station was changed a month later.[8] An 1869 advert mentioned Otane bush, Kaikora.[9]

In July 2020, the name of the locality was officially gazetted as Ōtāne by the New Zealand Geographic Board,[10] having previously often been written as Otane. The New Zealand Ministry for Culture and Heritage gives a translation of "place of a man" for Ōtāne.[11]

Ōtāne railway station in 1958

Tenders for a new public library were invited in 1883[12] and it was open by 1884.[13] It was replaced in 1929 by a building which also contained council and medical offices.[14] It is now occupied by McCaulay's cafe and store.[15] A war memorial is next to the former library.[16]

Initially the township was served by mail coaches running between Napier and Waipukurau.[17] Ōtāne (at that time Kaikora) railway station opened on Monday 28 August 1876, when the railway was extended from Te Aute to Waipawa.[18] as part of the Palmerston North–Gisborne Line. It was part of the Paki Paki to Waipukurau contract, tendered on 15 July 1874 for £19,532 by Charles McKirdy, of Wellington, who built the Rimutaka Incline and several other lines.[4] A local contractor tendered £29,173.[13] There were allegations of mismanagement[12] and disputes about the contracts.[14] However, in 1876, the Minister for Public Works, Edward Richardson, attributed delays only to unexpectedly heavy land claims and floods. S Tracey and Allen, of Napier, tendered £7,989 for track for the Paki Paki-Waipawa length in September 1875.[16] Ōtāne started with 2 trains a day in each direction,[15] increased to 3 in 1883[19] and 4 in 1896.[20]

By March 1876 Justin McSweeney had built a platform and station, McLeod & Co a 5th class stationmaster's house and Joseph Sowry a goods shed and water tank. In 1884 the station was enlarged and a loading ramp, cattle and sheep yards added. That station burnt down on 1 February 1894. By 1896 Kaikora had a 5th class station, platform (154 ft (47 m) long in 1926), cart approach, 40 ft (12 m) x 30 ft (9.1 m) goods shed, loading bank, cattle yards, stationmaster's house, urinals and a passing loop for 26 wagons. In 1940 the loop was extended for 80 wagons. There was a Post Office at the station from 1883 to 1912. In 1912 an automatic tablet exchanger was added. Railway houses were built in 1927, 1945 and 1953. In 1966 a new 500 sq ft (46 m²) station was built of concrete blocks, with an aluminium roof[8] on the same site.[21] On 9 October 1967 Ōtāne closed as an officered station and on 8 June 1985 it closed to all traffic.[8] Only a short platform remains.[22]