Mudgee is the second oldest town west of the Great Dividing Range and was settled 12 years before Melbourne. Over the years the region has developed into a thriving area based on agriculture, horticulture, viticulture, mining and tourism. Today, mining, general farming, the growing wine industry and a flourishing arts community all combine to help drive forward the area’s economic growth.
In years gone by the fertile river flats of the Gudgegong (cuj-ee-gong) River provided the ideal conditions for growing acres of asparagus for canning. Today Olive groves are a major feature of the valley as well as the numerous vineyards, whilst hazelnuts, pistachios and tomatoes add to the variety of vegetables sold at the local Farmers’ Markets.
Prime Beef, venison and lamb thrive on the pastures and eventually find their way into the local butchers and restaurants. Mudgee is equally well known for its honey production. The most amazing choice of varieties is found both at the producers’ doors and in local shops.
The first vineyards were established by German experts in 1858. The Chardonnay grape was one of the first to make its mark, but today the area is one of Australia’s premium red wine areas. The reliable summer weather with cool nights make for slower and longer ripening periods, whilst the rich volcanic soils produce wines of great depth and character. The region now has over 3,000 hectares of grapes and over 40 Cellar doors open throughout the week for private tastings. Although a number of the vineyards have contracts with major outlets all around the world, most can only be bought at the Cellar Doors and so their labels will never be seen on the Bottle Shop or Supermarket shelves. The current problem for the grape growers is that many have "jumped on the band waggon", creating a grape mountain and wine glut. As a result, some grapes were not picked this year and some vines are now being moth-balled by cutting them to within a metre of the ground.
The local saying is: “What grows together, goes together”. It’s all here in Mudgee.
Original mining is suddenly expanding and becoming a vital element of the regional economy. The nearest open-cut and underground coal-mines are 40km away at Ulan. Additional infrastructure is currently being developed for 2 new mines in the same area. The effect on Mudgee will be an increasing demand for housing as new jobs at the mines become available. Obviously, a growing population will create additional needs for their everyday living. Mudgee is bucking the current national trend in the housing market, with house prices rising and new building going on a-pace. There are rumours too of future explorations for alternative minerals stretching from Ulan to Rylstone. If the Regional Abbatoir, which closed in 2003 with huge debts that have now been wiped out, re-opens (as is the plan), new jobs will be created in the meat industry. A new gas pipeline has been opened between Dubbo and Tamworth passing by Dunedoo, to the north of Mudgee. The new Abbatoir owners have secured federal funding to help bring gas to the plant via a proposed spur pipeline from Dunedoo. This will give the Gulgong township and the whole of Mudgee its first access to natural gas and create work for fitters and maintenance engineers. Mudgee hospital has already shown an interest in having gas installed once it becomes available.

All in all, the outlook seems very positive but the worry is that Mudgee will grow so fast that it could lose its country atmosphere and charm. Local shopkeepers in their high-street shops are concerned that proposals for a large new shopping centre including a Coles supermarket, a Target Country Department Store plus 28 smaller shop spaces will go towards making the town centre something of a ghost area. The planners have much to think about, as has happened in England and all over the world. Let's hope they make the right decisions for Mudgee.
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