Dunkeld is an important cross roads town that is also the southern gateway to the Grampians. Dunkeld will be encounted also when traveling the Ballarat to Hamilton route. Dunkeld is a resort town an also a very picturesque locality, that has a nice blend of the old and the new. Dunkeld, in the shadow of The Grampians is the sort of place the traveller would feel, that is a stay awhile location.
The first pastoralists took up properties here in the late 1830s, and there was a decade of sometimes violent clashes with the Chapwurring. A small European township developed which was initially known as Mount Sturgeon, the hill behind the town. A Post Office of that name opened on 1 July 1852 (Dunkeld from 1 January 1854); but, as the early settlers were predominantly Scottish, it was renamed Dunkeld after a Scottish town which was the principal locality of the Caledonian picts in Roman times.
In January 1944 fires destroyed one-third of Dunkeld's houses and only the Royal Mail Hotel remained from the five original establishments. Today it contains an up-market restaurant and accommodation. There is also a variety of business and essential services that support the town.