Tourism is now the major industry around Lake Eildon and is a great place for a relaxing holiday, away from the pressures of city living and is within easy driving distance from Melbourne and other centers in Victoria for a day trip..There is now a wide range of activities now the lake has filled up! And accommodation, Caravan Park s and the like have been brought back to life. Lake Eildon provides great water sports and recreational fishing and is also surrounded in sections by lake Eildon national park making it easy for visitor to camp and have memorable family holidays.
The township was established subsequent to gold discoveries in the area. It was originally named Doon after the town of that name in Ireland. The Post Office opened on October 1, 1866 and was renamed Bonnie Doon in 1891 coinciding with the arrival of the railway.
Much of the original town of Bonnie Doon was flooded by the construction of Lake Eildon in the 1950s. The township was relocated; some buildings were picked up and moved, whilst others were able to remain in their original site, such as the churches.
Lake Eildon makes Bonnie Doon a minor tourist town for water activities, and the surrounds of Bonnie Doon, which has a rail trail, are somewhat popular for weekend holidaymakers. This popularity was satirised in the Australian comedy, The Castle, with popular quotes such as “ahhh… the serenity” and its catch-phrase song “We’re going to Bonnie Doon”. Bonnie Doon previously had an Australian Rules football team competing in the now defunct Benalla & District Football League.