[6] He retired to England in 1836,[citation needed] but poor health prompted him to emigrate with his family to healthier climes.

Valpy was the first settler in the south Dunedin area, with two large farm properties he named "Caversham" and "The Forbury" after places connected with his family in and around the town of Reading, in the English county of Berkshire.

These farms were important sources of employment for many of the new community, as was Valpy's construction of a road linking the properties with the heart of the city.

Valpy was heavily involved in local politics, though his Anglican English background came under strenuous attack from the Scottish Presbyterian community of early Dunedin.

In May 1851, Valpy was invited by Sir George Grey to represent Otago in the original New Zealand Legislative Council.