late as 1889, when Assistant Surveyor Henry King set up camp on the north side of Merredin Rock, there was still no township. The first settlement was established to the north of Merredin Peak on the York to the Goldfields road but it was hastily moved when the railway, which could not follow the gradients of Hunts Road, was built a few kilometres to the south. In 1888 the area to the east of Merredin was officially proclaimed a goldfield and over the next decade prospectors and fossickers poured through the area. Gold was discovered at Coolgardie in 1892 and at Kalgoorlie a year later. At first the prospectors used Hunt's waterholes road and this meant that they passed through the site of the modern town. In 1893 the narrow-gauge () railway that was being continually extended eastwards from Perth, reached the town. Merredin's importance as a town was directly related to the establishment of a superb water catchment scheme on Merredin Peak. The narrow-gauge railway was extended eastwards from Merredin to Southern Cross in July 1894, and to Kalgoorlie in January 1897. A rock wall was built around the contours of Merredin Peak. It led to a channel which in turn led into a dam which had a storage capacity of . The scheme held every drop of water which landed on the Peak and directed it all into the dam which provided water for both the town and the railway. The entire structure is still intact and can be easily reached at the northern end of town. Constructed between 1893 and 1896, the Railway Dam ensured that Merredin would become much more than just another wheat-belt siding. The need for the water from Merredin Peak disappeared in 1903 when C. Y. O'Connor's pipeline was completed. The pipeline joined the waterless goldfields at Kalgoorlie and Boulder with the plentiful supplies of water in the Helena River east of Perth. Merredin Peak's Railway Dam continued to supply water to the railway until 1968 and even today is still used as the water supply for the fountain outside the Merredin Railway Museum and railway station. In 1904 the Agricultural Research Station was established. It was here that the Bencubbin strain of wheat was developed. Land in the present townsite was offered for sale in 1906 and by 1911 the Merredin Roads Board had been formed. The narrow-gauge rail line from Merredin