Sugarloaf Reservoir is a reservoir located north-east of Melbourne. It was completed in 1981. Its total capacity is 96 GL. As of February 12, 2010 the reservoir sits at 67.1% of capacity. It reached nearly 80% in late 2009 after reaching nearly 10% in May. In February 2010, the North South Pipeline from the Goulburn River was connected to the reservoir.
Christmas Hills owes its name to an emancipated convict and shepherd, David Christmas, who became lost on a 640-acre (2.6 km2) grazing lease in the area in 1842, and was found after days of wandering at a rise which was subsequently named after him. The area was considered to have poor quality soil, although nearby settlers earned an income from chopping firewood in the sclerophyll forests.
Gold was discovered at One Tree Hill in 1859, fuelling a brief goldrush. Quartz reef operations ended in 1864, and alluvial mining continued until 1908.
The area grew considerably in the 1870s; at one point the town had two hotels, two schools, a post office and a Mechanics’ Institute.
The Post Office opened on 10 December 1874 as Christmas Hill, was renamed in 1913, and closed in 1974.
In 1884, a primary school was built, and by 1912, when the railway from Heidelberg to Hurstbridge was built, the area had a population of 146 and had become a tourist destination, popular with Melburnians seeking “clean air and an invigorating climate”.