The area began back in the 1860’s after gold was discovered and the small town of Darlingford (named after Sir Charles Darling, Governor of Victoria), near the junction of the Big and Goulburn Rivers came into being.
Darlingford was later submerged in the 1920s, when Sugarloaf Dam was built on the Goulburn River between Mounts Sugarloaf and Pinniger. Remains of the town still exist under the waters of Lake Eildon today and during the early 2000s it was reported that a drought resulted in the tops of some of the town’s buildings protruding from their watery grave.
Sugarloaf Reservoir construction commenced in 1915 and was finally completed in 1929. It was in commission for less than a year when it was deemed to small and it was modified in 1929, and again in 1935 to increase the storage capacity, however it was still limited in its capacity to meet the growing demand for water in the Goulburn Valley and to protect farmers during drought years.