Nundle was established at the foot of the Great Dividing Range when gold was discovered at "The Hanging Rock" and nearby Swamp Creek in 1852. By June 1852 there were 300 diggers on the fields at Oakenville Creek. Prospectors from California, Europe and China were also digging along the Peel River and up the mountain slopes. By 1865 the population was around 500 with about 50 businesses in operation. A public school was completed during December, 1871 and lessons commenced there in 1872. Nundle was declared a town in 1885. In 1924 the Peel River Bridge was constructed and in 1941 electricity was connected to the town. During 1966 the swimming pool was opened by the Rt Hon. Ian Sinclair. The population of Nundle Shire was 1350 in 1969. In 1979 Premier Neville Wran opened the newly completed Chaffey Dam. Sheep, cattle and timber are the economic mainstays of this village nowadays.