In September 1860, the Wahgunyah rush, one of the last in Victoria, started when a deep lead was found underground on the present townsite of Rutherglen. The township of Barkly sprang up to the west of the claim and it was soon followed by another 500 metres to the east. The latter was named Rutherglen in October after the Scottish birthplace of John Wallace, who set up the Star Hotel (the first major establishment in the town)on the new townsite (Barkly is now part of Rutherglen)