Australian General Hospital. The army also set up a Katherine Area Headquarters. On 22 March 1942, Katherine sustained its only air raid during World War II. One man was killed when a Japanese aircraft bombed the town.
The river flooded the town in 1957 and 1974.
On Australia Day in 1998 a major flood devastated the town, and the area was declared a national disaster. The flood resulted from the 300�400 mm of rainwater brought by Cyclone Les that caused the already full Katherine River to peak at 20.4 metres. The floodwaters inundated the town and much of the surrounding region, requiring the evacuation of many residents. The flood covered an area of 1000 square kilometres, affected 1100 homes and cut off many roads in and out of Katherine. Three people drowned.Mining production has declined since the closure of the mine at Mount Todd (50 kilometres to the north) in 2000.
Construction began on a new rail line in July 2001. On 13 September 2003, the line was finished with a continuous track from Adelaide, South Australia to Darwin. The Ghan passenger train service commenced on 4 February 2004 running several times a week and stopping on both the northbound and southbound journeys.
The April 2006 floods placed parts of the town under water (including about 50 houses), caused millions of dollars of damage, and resulted in the declaration of a state of emergency on 7 April. However, there were no reports of the flooding causing structural damage. Town residents were given warning that the river might flood on 5 April, and the town centre was underwater before noon the next day. The floodwaters reached a peak of nearly 19 metres at the Katherine River bridge. Dozens of homes were inundated with up to 2 m of water, with many residents having time to escape with little more than the clothes they were wearing. Over the weekend of 8�9 April, more than 1,100 people went to the evacuation centres in the town. The state of emergency was lifted on 9
