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Introduction and early settlement

Lilydale, once known as Upper Pipers River, has a rich history that dates back to Tasmania’s early European settlement. By the time settlers came to the Lilydale district, there was little to no sign of its occupation by Aboriginal Tasmanians. The district originally included what is now Underwood, which was intended to become the main township, but Lilydale ultimately grew into the community we know today.

Early landowners and industry

In the mid-19th century, settlers began purchasing land and developing industries that would shape Lilydale’s growth:

  • William Tyson and William Dawson Grubb purchased 240 hectares in the Underwood area, which was heavily forested at the time.
  • They established Northern Tasmania’s first power-driven sawmill, employing many workers.
  • William Crabtree, the first mill manager, lived in the area now known as Hollybank Reserve.
Whites Mill, Mount Arthur

Sawmilling continued as a major industry in Lilydale for much of the 20th century, with timber sourced primarily from the slopes of Mt Arthur.


European settlement and immigration

Lilydale’s population grew rapidly as settlers from England, Ireland, Germany, Scotland, and Wales arrived in the area.

  • John Campbell, a Scottish settler, selected land between Lilydale and Underwood in 1860.
  • David Scott and David Fernice were the first to select land within the township of Lilydale in 1861.
  • Scottish settlers William Somerville and William Wilson soon followed.

German settlers – “German Town”

Staubi Farm 1880

Lilydale had a significant German population, leading to its informal name, “German Town.” Key German families included:
✅ The Miller (Beutenmüller) family, arriving in Tasmania aboard the Montmorency in 1855.
✅ G.J. and L. Miller, who took up land in Lilydale in 1862.
✅ Sulzberger, Dornauf, Kelb (Kelp), Erb and Marx families, also arriving on the Montmorency.
✅ Other settlers, including Ludwig and Luder Bardenhagen, John Mahnken, and the Staubi family.

These families worked as farmers, producing butter, eggs, and vegetables which they traded in Launceston for groceries. Many also travelled to Longford and the Midlands for seasonal work in grain harvesting and sheep shearing.


Development of the township

Lilydale First State School, and public hall in 1885. In the background G.K. Sulzberger’s house where the first post office was located. In the foreground William Mundy on the right and Samuel Arnold on the left. 

Lilydale’s township began taking shape as more settlers arrived, bringing essential trades and services:

  • Robert and Eliza Arnold (from Dorset, England) purchased 50 acres in 1866.
  • John Power (from Ireland) settled in 1862.
  • Notable early tradespeople included:
    • Fred Proctor – Wheelwright and stonemason
    • Nicol Turner – Stonemason
    • Edward T. Dolbey – Schoolteacher
    • George Arnold – Launceston’s first car salesman
    • J. Doak, John McConnon, William Lowe, J. Brooks, B.D. Green, and E. Chick – Various community members and professionals

By the late 19th century, Lilydale had transitioned from a remote settlement into a thriving farming, timber, and trade community.

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