[2] During the Victorian gold rush it prospered due to being at the main road junction to the nearby goldfields of All Nation's Gully and Mount Egerton.

[2] The fledgling town had many Irish Australian settlers and those not involved in mining or commerce took up agriculture, notably potato farming.

Since the 1990s, Gordon has experienced a revival due to the tree change phenomenon with its large semi-rural blocks, quiet rural aspect and driving proximity to Ballan, Ballarat and the railway to Melbourne.

The town is laid out in grid plan with a network of wide single carriageway streets interrupted only by the topography including the curve of the creek and the peaks of the surrounding hills.

This geography also defines the location and provision of sewerage network to the township provided Central Highlands Water in which properties are added to the reticulated service, and those that have septic or treatment plants.

Internet connectivity is provided from the shared Gordon-Egerton ADSL2+ enabled Telstra exchange, and wirelessly by the National Broadband Network from either the Springbank and Mount Egerton towers.

The Western Highway passes through Gordon and, though bypassing the centre of town, it provides a connection to the major cities of Melbourne and Ballarat.

A bus route has since been introduced to counteract this problem with several buses running at intervals throughout the day to local towns including Ballarat and Ballan.