Mollongghip is a rural village immediately west of the Wombat State Forest. It is 18 km south-west of Daylesford and slightly less south-east of Creswick.
The undulating landscape of Mollongghip has good agricultural soil. Settlers named it Happy Valley, and the school (1885) had that name for two years before 'Mollongghip' was adopted. The meaning of the name is uncertain.
A public hall was built in the 1890s and by 1912 the village also had a post office, a store and an Anglican church which had been built at Musk Creek (1860s) and transported there in 1912. The school closed, probably during the 1970s.
Mollongghip is a mixed farming district, and potatoes are grown under spray irrigation. Its census populations have been:
Lester Tropman and Associates et al, Creswick Shire heritage study, Creswick Shire, 1990