Clunes is a rural town between Maryborough and Creswick, 115 km north-west of Melbourne. It is built in a hilly valley formed by the Creswick Creek, and there are various elevated points from which the town can be viewed.
Near the creek, and north-west of the town, a European settler, Donald Cameron, built a homestead. The area is now Cameron Reserve. He named his pastoral run Clunes, after his place of residence in Inverness, Scotland.