Newlyn is a rural township on the Midland Highway where it is intersected by the Ballarat-Daylesford Road and the former railway line (1887-1976) between Creswick and Daylesford. Newlyn is a short way west of the Wombat State Forest, and Creswick is 8 km to its east. Newlyn North is 2 km away and Newlyn Reservoir (1880) is in the foothills of the State Forest. The reservoir was built for the water trust at Clunes.

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