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European exploration and settlement of the Coal River Valley commenced shortly after the establishment of Risdon colony on the Derwent in 1803.
James Meehan's expedition of exploration commencing from Risdon Cove in late 1803 passed through the Coal River to Prosser's Plains, and the Sorell district. By 1804 coal was being "mined" from the river bank at the site of modern Richmond.
The Coal River Valley comprises those townships and areas which once constituted the Municipality of Richmond. Townships and districts include Richmond, Enfield, Rekuna (formerly Upper Tea Tree), Campania, Native Corners, Lowdina (formerly Lower Jerusalem and Woodlands), White Kangaroo Rivulet, Brown Mountain, Colebrook (formerly Jerusalem), Spring Hill Bottom, Yarlington, Brandy Bottom, Eldon (formerly Burn's Creek), Hollow Tree Bottom and Rhyndaston (formerly Flat Topped Hill). Three other settlements or areas, Runnymede, Black Charley's Opening and Levendale (formerly The Scrub), although not in the Coal River Valley, are included, as they were part of the Richmond Municipality.
On 2nd April 1993, the Municipality of Richmond was divided and amalgamated with two other municipal authorities: the City of Clarence and the Municipality of the Southern Midlands. The Coal River Valley was divided between two municipal authorities for the first time since European settlement. Councillor Bob Giles, the last Warden of the Richmond Municipality, in 1993 said "I've never been happy since they (the Local Government Advisory Board) decided to split us up."
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