[1] The Djab wurrung people lived in this region to the south and east of the Grampians for over 4,000 years prior to the arrival of the Europeans.

[3] At a strategic point south of the Grampians for road traffic and surrounded by fine wool producing country, Dunkeld thrived in the mid-19th century.

Road traffic declined with the opening of the railway (1877 to Hamilton and Ararat, with another short-lived line going south to Penshurst).

In January 1944, fires destroyed one-third of Dunkeld's houses and only the Royal Mail Hotel remains from the five original establishments.

There is also a general store, bakery with accommodation, five cafes, post office, art gallery, bookshop, gift shop, petrol station (under reconstruction 2019), pharmacy, primary school, childcare centre, local museum, bookshop, (sandstone) stonemason and a hardware store, tourist information centre and 2 churches.