Terang, a rural town on the Princes Highway, is 40 km north-east of Warrnambool, western Victoria.
Terang adjoined the Glenormiston pastoral run (1840), and an employee of the run built a slab hut beside Lake Terang. (The lake has had varying water levels, and lies beside the Terang golf course. For much of the nineteenth century it contained water). The slab hut led to a small settlement and in 1858 a township was surveyed and a school was opened.