Christmastown was one of three villages established on the Indigo gold lead in north-east Victoria, and was 4 km south-east of the Mount Ophir vineyard, Rutherglen. The other villages were Indigo and Cornishtown. They were located at intervals of about 1 km.
The Indigo gold lead was opened up in 1859, along with tributary leads such as Caledonian, Devonshire and Durham. Because of the proximity of the three villages to each other one school sufficed at the middle one - Cornishtown - from 1865 until about 1936.
It is thought that Christmastown was so named because the first gold mining settlement occurred around Christmas, 1859. Within about six years mining activity was not much in evidence and Bailliere's Victorian gazetteer mentioned that grape vines were grown there. There was one hotel serving a small and scattered population.
Christmastown's sole recorded nineteenth century census population was 238 in 1861. Later figures were 125 (1911) and 30 (1933).
Cornishtown centenary 1873-1973, Cornishtown, 1973
Robert W.P Ashley, History of the Shire of Chiltern, 1974