The site of Mosgiel figures in
Māori legend, but surrounding features of the
Taieri Plain and adjacent hills have older mythical associations. Of the canoes of South Island migratory legend the fourth and fifth,
Tākitimu and
Āraiteuru, are mentioned in connection with the area.
Maungatua, the large hill to the west of the plain, represents a huge wave which struck the Takitimu, throwing overboard Aonui, who became a pillar on the
Tokomairaro Beach. Another account makes Aonui a female survivor of the wreck of the Ārai Te Uru, built by Kahui Tipua, who had arrived earlier but sent this vessel to the
Polynesian homeland Hawaiki to get
kūmara. On its return the canoe suffered shipwreck at
Shag Point in
North Otago, but its survivors quested about the land in search of supplies. If they failed to get back before dawn they turned into natural landscape-features, and this fate befell Aonui. These ancient traditions suggest that some of the earliest Polynesian settlers in the south knew the Taieri Plain. W.R. Kirk repeated the later story of a
taniwha (water-monster), the "familiar spirit or guardian of Te Rakitaounere (also given as Te Rakitauneke) a famous chief and warrior" who lost his master about the Dunedin hills, slithered down the Silverstream, 'Whaka-ehu', and 'lay down and left a hollow Te Konika o te Matamata' on the site of Mosgiel. The
taniwha (named
Matamata) wriggled down the Taieri, making its tortuous course, and when he died became the seaboard hills, including Saddle Hill. This story has associations with
Kāti Māmoe, ('Ngāti Mamoe' in modern standard Māori) of the late 17th or early 18th century. According to tradition this period also saw the occupation of the
kaik (unfortified settlement) near modern
Henley – called
Tai-ari like the river – and on the hill above it a
pā, or fortified settlement, called
Omoua.
Tukiauau built a pā called Whakaraupuka on the west side of
Lake Waihola and his rival,
Tuwiriroa, came down from
Lake Wakatipu and built one at
Taieri Mouth on the coast. Māori soon abandoned Whakaraupuka, but the Taiari settlement at Henley endured into modern times. (Anderson, 1998.) In February 1770 Captain
James Cook described the saddle-shaped hill which became known as Saddle Hill, the landmark east of Mosgiel. The
Weller brothers of the
Otago whaling station on
Otago Harbour (modern
Otakou) sent a Mr. Dalziel to inspect the Taieri Plain for a proposed Scottish settlement in 1839, but he gave an unfavourable report. In 1844 Edward Shortland noticed Māori running pigs on the landward slopes of
Saddle Hill or
Makamaka (as he recorded the hill's Māori name).
Charles Kettle surveyed the plain and coastal hills for the
Otago Association in 1846 and 1847. He also climbed the westward hills and saw the raised land beyond, the nearest approach of the
Central Otago plateau to the sea, which he correctly identified as potentially fine
pastoral country. Following the arrival of the Association's settlers at Dunedin in 1848, a Scots shepherd, Jaffray, brought his wife and dogs along the Māori track from
Kaikorai Valley and settled on Saddle Hill in a
whare (a Māori-style house) in 1849, establishing the first European farmstead in the district. In the same year the Reverend
Thomas Burns, spiritual leader of the Association's settlement,
selected the land which would become Mosgiel. In the mid-1850s
Arthur John Burns, a son of
Thomas Burns, settled on some of the land. A large stand of native
bush stood nearby. The richness of the land and the proximity of the main south road, more or less following the route of an old Māori track, led to early close rural settlement. The 1861
Otago gold rush saw the development of a road – leading west to the interior – which intersected the site.
Arthur John Burns's establishment of the Mosgiel Woollen Company and mill in 1871 brought the settlement of workers in cottages. 1875 saw the north-south road paralleled by a
railway, with a branch to the west constructed in 1877. The authorities declared the Mosgiel Town District in 1882 and constituted a
Borough Council in 1885. The town grew and became the most substantial in the district. The surrounding plain became a sort of
Home County to Dunedin, a place of prosperous farms and of the large houses of successful businessmen with rural tastes. Horse-breeding and racing flourished. == Mosgiel in the twentieth century ==