Saltwater Creek forms a large part of the southern boundary as it flows east to join the Mary.

William Sim was a partner in the Dundathu mill, having previously worked in another of Pettigrew's sawmills.

Another fire in August 1895 destroyed a number of empty houses, with Dundathu settlement described as "ashes and desolation" from which it did not recover.

It closed in May 1895, after the teacher was withdrawn due to low student numbers caused by the closure of the sawmill.

In 1878, a traveller along the Mary River described Dundathu as follows:[12] "The next break in the peaceful monotony of the placid river is Dundathu, a timbering establishment consisting of a sawmill, store, school, and about thirty cottages, all nestling in a green hollow among picturesque conglomerate rocks, and commanded by the handsome villa residence of the Sim family."