You're right about the incorrect information problem. People make the exact same mistakes about "Aboriginal" as "American Indian": they assume that there's one language for all, and they randomly attribute untraceable names to these cultures, for no logical reason.
LadyLisa's comment drew my eye as I'm also from Western Australia, and I have just posted the following response:
Firstly, "Koori" is a tribal name from New South Wales and Victoria. The Aboriginal people of the Perth region are the Nyoongar.
Secondly, I have never seen any reference to Narelle as a Western Australian name. There is a town named Naraling which was named for a nearby spring (not lake), but the meaning of the spring's name is unknown. Watering places in the Nyoongar region tend to have been indicated by the syllable "up" at the end of the place name.
On to what I do know: there *is* a place named Narellan, a former village that is now an outer
Sydney suburb. I did a heritage plan for it a few years ago, but sadly I couldn't find out the origin of the name. I have no idea whether
Narelle is related.
http://en.wikipedia.org/wiki/Narellan,_New_South_Wales
I found the following women named
Narelle whose births were recorded in New South Wales between 1788 and 1906:
1890:
WILSON,
NARELLE O. Father:
WILLIAM J. Mother:
CAROLINE M M. Parish: LISMORE
1890: TINGCOMBE,
NARELLE L. Father:
JOHN L. Mother:
ADA. Parish: WOOLLAHRA
1894: ARMSTRONG,
NARELLE. Father:
WILLIAM C. Mother:
FLORENCE E. Parish: LEICHHARDT
1900: BEAMES,
NARELLE B. Father:
ROBERT D. Mother:
ADA M E. Parish: ST LEONARDS.
1900: CRAPP,
NARELLE. Father:
CHARLES J. Mother:
MAUD E. Parish: MORUYA
1906:
FORD,
NARELLE A. Father:
WILLIAM. Mother:
ANN. Parish: REDFERN.
1906: WOODBRIDGE,
NARELLE. Father:
JAMES A. Mother:
JANET. Parish: BURWOOD
Woollahra, Leichhardt, St Leonards, Redfern and Burwood are all
Sydney parishes (all reasonably close to the city proper). Lismore and Moruya are rural. None are anywhere near Narellan.
I found those here:
http://www.bdm.nsw.gov.au/cgi-bin/Index/IndexingOrder.cgi/search?event=births
That's all I've got so far, but I'll let you know if I think of anything else. I've known about half a dozen Narelles, so the name interests me.