The name 'Araluen' is an Australian Aboriginal word. It is believed to mean 'water lily' or 'place of the water lilies'. When European settlers arrived Araluen was a wide alluvial valley. It had many billabongs covered with water lilies. No billabongs exist in the Araluen valley today. The natural shape and look of Araluen Creek and its valley were completely destroyed by uncontrolled and very destructive gold mining. This took place during the 'gold rush' in the second half of the 1800s.