Prior to the gold rush the Bendigo (called Sandhurst, in those days) district was part of a large
sheep station known as "the Ravenswood Run". Discovery of gold deposits in the 1850s brought many miners to the region, looking to seek their fortune. People came from a number of overseas countries, such as England, Netherlands, Ireland, The United States of America, Germany and others. Large numbers came from mainland China. Chinese miners conducted searches of alluvial (surface level) and shallow mine-sites. Characteristically "round" Chinese digs are still able to be viewed in places such as Charcoal Gully, a bushland reserve located between Morrison and Thomas Streets to the southwest of Kangaroo Flat's town centre. This Chinese influence was at first resented by other diggers, many who came from European countries with little or no understanding of the Asian lifestyle. Concerted efforts by Chinese settlers to assist their adopted communities led to their being eventually embraced in the district. Bendigo and satellite towns, including Kangaroo Flat,
Golden Square,
Eaglehawk and
White Hills, sprung up essentially as tent cities. These gave way to more permanent structures and the current street layout was established by the 1880s. The Post Office opened on 2 February 1857. The population of Kangaroo Flat itself decreased along with the rest of the "Sandhurst" region as the gold rush subsided, although the town has always maintained its own cultural heritage and identity. Kangaroo Flat is home to the
Crusoe Reservoir, built during the gold rush to supply water to Bendigo's goldfields. Water for the reservoir came from a series of channels reaching as far south as
Kyneton. Crusoe's filtration system included a lime/sand-based installation. The reservoir is open today as a recreation park and swimming beach. At November 2016, with the town's population approaching 12,000 residents, local facilities have been upgraded to keep pace with community needs. The Kangaroo Flat Fire Brigade was established in 1873 and initially operated out of a wooden station in Smith Street. The Brigade was established and equipped with funds donated from within the community. The Brigade moved to a new premise in Station Street in 1956 in part to facilitate a second fire fighting appliance (tanker). It has now relocated to a new site in Helm Street, adjacent to Charcoal Gully. The new fire station houses four firefighting appliances and facilities for its volunteer fire fighters. The Brigade will celebrate its 150th anniversary in 2023. The Country Fire Authority's District 2 Headquarters have been relocated, from their former site atop Bendigo's Fire Station, to the site of the old Don Murray's Windermere Hotel, at the intersection of Lockwood Road and Helm Street. Kangaroo Flat itself has grown from its early beginnings. The 4-lane
Calder Highway carries thousands of vehicles daily on a 90-minute trip to the nearby
Victorian capital city of
Melbourne and suburbs. Three shopping precincts cater to the growing demographic, and a restored and upgraded railway station allows commuters access to the
V/Line train system linking Bendigo to Melbourne and other urban districts. == Demographics ==