TEMPE was named after the home of Alexander Brodie Spark , which was built in 1835 on the southern bank of Cooks River . Spark named his house after the beautiful Vale of Tempe , beneath Mount Olympus in Greece.

A railway station opened in 1884 and Tempe became a popular resort with large crowds attracted to Cooks River for swimming and boating. Tempe is still serviced by the railway on the Cityrail Illawarra line, as well as a bus service that runs along the Prince's Highway to Newtown and the Sydney CBD .

Tempe bus depot, (formerly, Tempe tram depot), is home to the Bus and Truck Museum