Gold was discovered in 1868 at Woods Flat, a few kilometres south of Woodstock. A rush of 500 diggers took up the ground there, but after a short period only a few were left as surface gold was minimal and water supplies lacking. The goldfield had a long history but today almost nothing remains of the buildings at Woods Flat. The village of Woodstock was established in response to the building of the railway line north of Woods Flat, from Blayney to Cowra in 1880s. Initially known also as Woods Flat, the name of the village was changed to Woodstock in 1886.