Greystanes is located 29 kilometres west of the Sydney central business district in the local governement area of the City of Holroyd.
In the early years of British settlement the area was known as Prospect Hill and was the site of the first land grants to emancipated convicts in 1791. At this period it was one of several areas of conflict between the indigenous Dharug people and the settlers, the Dharug being led for many years of guerrilla warfare by Pemulwuy.
The area later became differentiated into Prospect, to the west of Greystanes Creek, and Greystanes to the east of the Creek, the latter taking its name from a historical home on Prospect Hill, built by Nelson Simmons Lawson, third child of Lieutenant William Lawson. The name 'Grey Stanes', given by Nelson Lawson, came from the outcrops of basalt on Prospect Hill, "Grey" being its colour and "Stanes" being the Scottish word for stones.
The land was originally granted to William Cummings in 1799, before being acquired by William Lawson in approximately 1810. It was from this land that William Lawson, Gregory Blaxland and William Charles Wentworth set out on their successful crossing of the Blue Mountains in 1813 and discovered the Bathurst Plains. The Lawson family crypt still exists today at St Bartholomew's Church, Prospect.
Poultry farming became important in the early twentieth century until Greystanes developed in the 1950s and 1960s as a residential suburb.
The major arterial roads include Cumberland Highway, Great Western Highway and M4 Western Motorway. Greystanes is serviced by Westbus with the train stations at Parramatta and Merrylands.
It is also indirectly serviced by the Parramatta-Liverpool T-Way which runs through Smithfield and Wetherill Park, to the south.