First exploration around Derrinallum began in 1837, with some of the land being settled in 1840. The town really began to progression after the 1st World War  with the subdivision of larger stations into smaller soldier settlement dairy farms for about 76 families. The farms ranged in size from 119 to 130 acres and featured homes built of stone from the properties and lined with unpainted three ply. It was a very harsh settlement with high repayments and high interest rates. The land was not suitable for dairying and farmers faced rabbit plagues, bad seasons and inexperience. After a few years many settlers left there farms, the government did a revaluation on the farms and any excess over the valuation was written off.

Settlement from World War 2 benefited Derrinallum and progress was substantial. The new settlers were treated much better, farms were larger (420-750 acres ) and loans were at two percent interest plus one percent on capitol payments over 55 years. Derrinallum is best known for its landmark - Mount Elephant, described by geologists as a perfect steep sided scoria cone and commonly known as the Swag mans Lighthouse. The 400 metre high feature was once heavily timbered, but two bush fires and rabbit plagues have left it bare.
SceneryThe Elms are a striking feature of Derrinallum, they were planted in the early 1900ís. Stone walls throughout the district are also a feature. Mt Elephant (The Swag mans Lighthouse) a perfect scoria cone, last erupted 4,000 years ago. A walking track can be use to view the crater by making a appointment.
Recreation Deep lake is one of the popular fishing lakes in the district with good sized Brown trout, Redfin and eels being caught From boats and the shore.
For the best view of the district Western Aerial crop spraying offer Scenic flights.
Lismore Hotel1 High St. Lismore Ph ( 03 ) 55962030.
Elephant Bridge Hotel Hamilton Highway Darlington  ( 03 ) 5597 9231.
Darlington Hotel(03) 5597 9231.
Derrinallum Hotel / Motel (03) 5597 6641.
Bed & Breakfast:
David & Jill Deane "Kooraweera" Homestead, via Camperdown ( 03 ) 5593 8235.
Lawton & Margaret French "Rockbank" Derrinallum ( 03 ) 5597 6626.
Alistair & Caroline Gleeson "Ettrick" Camperdown ( 03 ) 5597 0212.
Lyle & Elsbeth Buntine "Bellevue"Darlington ( 03 ) 5597 9262.
The "Elms" Derrinallum (03) 5597 6517.
Yellangip Country HousePura Pura Rd DarlingtonVic 3271TEL: (03) 5597-9203.
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© The Gateway BBS Camperdown Authors:Anton Art & John Hamilton