Traditionally a market garden area producing a large amount of the region's fruits and vegetables, in recent decades it has transformed into the main commuter town on the Melbourne-Ballarat corridor.
[5][6] It was named after the colonial settler Captain William Henry Bacchus, who saw the great value of this locality as it was situated on two rivers — the Lerderderg and Werribee.
While there do not appear to be any records of open hostilities between whites and indigenous people, by 1863 there were a total of only 33 Aboriginal people left in the Bacchus Marsh district, and apart from a handful of recollections of the original inhabitants preserved by pioneer settlers, little remains apart from present-day locality names, mainly of watercourses: Coimadai, Djerriwarrh, Korkuperrimul, Lerderderg, Merrimu, Myrniong, Werribee.
One of the first white men to reach the Bacchus Marsh valley was pastoralist Kenneth Scobie Clarke (c. 1806–79), a native of Sutherland in Scotland.
Clarke was a manager for the Great Lake Company of Van Diemen’s Land and arrived in the Port Phillip District from George Town on 25 March 1836.
On 29 November 1836, Clarke headed west from Port Phillip with a large flock of sheep, arriving in the Bacchus Marsh district a few days later.
[10][12][13] Situated roughly halfway between Melbourne and Ballarat, Bacchus Marsh was a popular stopover for travellers during the Victorian Gold Rush.
Diarist Charles Evans described the location in 1853: We passed through a delightful valley called Bachus's Marsh [sic], the first cultivated land we have seen since we left Melbourne – barley and oats were flourishing in the richest luxuriance.
Housing development has also occurred in the natural extension of Bacchus Marsh like Underbank, and its surrounding areas including Parwan, Hopetoun Park and Merrimu.
The freeway was realigned under the Victorian Transport Plan bypassing Anthony's cutting, resulting in decreased travel time to Melbourne.
Bacchus Marsh Airfield (located in Parwan to the south) provides for general aviation and the area is home to a flying school and three gliding clubs.
Near the south gates of the park, opposite the Bacchus Marsh railway station, is the Nieuwesteeg Heritage Rose Garden of mainly twentieth century hybrid teas.