The small town of Neerim came into its own back in the days of the gold rush. In January 1860, gold was found in the Baw Baw diggings on the Tanjil River and in 1864 the gold rush was brought to Crossover. Starting in 1879 a coach was run to Neerim on a daily basis. From there it went to Drouin via Jindivick and people were able to connect with the trains for Melbourne. In 1877 a post office was established in Neerim with the first known post master, Adam English. A school was opened in Neerim in 1885 with Head Teacher Francis Hunter and was housed in the Methodist Church. In 1893 it was moved to the Mechanics Institute Hall in 1893. Bush fires swept through in 1898 and a new State owned building was erected in 1901 to house the school in Neerim. The school was closed in 1968 and the building was moved to Warragul.