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.