In earlier times, Wani was known as 'Wun'. Wani was a district headquarters in Berar Province during British rule. Later on Wani became a taluka and Yavatmal its district (earlier name 'Yeoti').
The economy of the town is mostly driven by agriculture and mining businesses in the surrounding area. The town received the name "Black Diamond City" due to the huge coal deposits and many coal mines in the adjacent area. Limestone is also quarried in the area. The principal crops are cotton and soyabeans.
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