Queensland State Archives posted a photo:
The Courier-Mail
11 January 1936
New Name For Stanley River Township
Somerset Dam is the name by which the township created in connection with the Stanley River flood prevention and water conservation scheme is now to be known.
When the new centre was laid out in the vicinity of the site for the dam the State Government named it Somerset. To this the postal authorities objected because there were already two Somersets in the Commonwealth — one in North Queensland and the other in Tasmania — and Stanley Dam was suggested as an alternative.
The name Somerset had been chosen to give recognition to an honoured Queensland citizen and former member of Parliament for Stanley— Mr. H. P. Somerset. The alteration to Somerset Dam,’ which was approved by, the Executive Council this week, is, apparently, a compromise choice. ‘Somerset’ is retained and at the same time confusion with .other centres

