It is located five kilometres east of Balclutha in South Otago, close to the small Lake Tuakitoto.

[3] Benhar was formerly the site of one of New Zealand's largest domestic porcelain factories,[4] closing in 1990 after a large fire destroyed the factory and surrounding warehouses.

The factory initially started manufacturing ceramic pipes and bricks, supplying the rapid growth of Dunedin's infrastructure before diversifying into pottery ware and then sanitary ware which was freighted from the factory's own rail yard.

The factory was owned by Peter McSkimming senior (1840s–1923) and then his son (Peter McSkimming junior) and son-in-law (Parker McKinlay).

[5] Benhar is described by Statistics New Zealand as a rural settlement.