The earliest economic activity in the Clarence Town area was cedar cutting, performed with convict labour from 1801. The village grew around the early river ports, which were used to transport timber from the area to Maitland, Newcastle and beyond.
The village of Clarence Town was surveyed and proclaimed in 1823. The Clarence Town river port and ship building industry quickly began to grow, as timber in the area was plentiful and of good quality. Clarence Town’s location was determined by the fact that it was the head of navigation of that river and had a natural river crossing existing at the site of the present bridge.
The first ocean-going steam ship to be built in Australia was constructed at Clarence Town. This was the “William IV”, a replica of which awas built for Australia’s Bicentenary. In the absence of proper roads, Clarence Town became the head of navigation for goods transported further north to Dungog and Gloucester by bullock wagons and drays.