Kandos is the brother town of the very historic Rylstone. Rylstone is an old town, and Kandos, just 8kms aware, though the latter is very much the small town. Both Kandos and Rylstone are encounted on the Dunedoo/Lithgow route.
Kandos sprang from the imagination of a group of opportunist men who recognised the deposits of shale and coal near the rail line could grow into a cement industry. They named the village Candos, using the letter of each of their names, the spelling of the name was changed at the request of the PO because it was similar to Chandos in South Australia. The cement used to build the Sydney Harbour Bridge
The town contains the northern-most field support centre of Integral Energy. This an interesting structure on the southern approach to Kandos.