According to Wikipedia, Neil McKay named this hamlet after his daughter. He had offered some of his land to the railway in 1911 for a townsite provided that he got to name the town. When the station was finally built in 1913, the painter misspelled Kathryn and the settlement became known as Kathyrn. The post office opened January 1, 1919.
Only a few people live in the area in modern homes. There is a modern school where people are bused in, a community hall, and a couple of old buildings. Whatever more was here disappeared long ago.