The history of Mudgee is deeply rooted in the culture of the indigenous Wiradjuri people. It is believed that the town's name is derived from an Aboriginal word meaning "Nest in the Hills," which accurately describes the valley's cosy location. The European discovery of the region is linked to the explorer William Lawson, who reached these lands in 1821.
The first European settlers began arriving shortly after the discovery, attracted by the potential of local pastures. The settlement was officially granted village status in 1838, and in 1860 Mudgee was proclaimed a municipality, becoming one of the oldest towns west of the Great Dividing Range.
The town's growth was determined by several key factors that transformed it into an important regional centre:
- Geography and Resources: Its location in the fertile Cudgegong River valley provided a reliable water source and excellent conditions for agriculture.
- Gold Rush: In the 1850s, the discovery of gold in nearby areas (Hargraves and Gulgong) caused a sharp influx of population. Although not a mining centre itself, Mudgee flourished as a major trading and supply hub for prospectors.
Mudgee's economic foundation was initially built on agriculture, particularly sheep farming and high-quality wool production, which allowed the town to maintain stability even after the decline of the gold rush. An important cultural and economic milestone was the emergence of viticulture in the mid-19th century. Thanks to German immigrants, such as the Roth family, the first vines were planted here. This event determined the destiny of the region, which is today known as one of the leading centres of viticulture in Australia.