As the meeting place of two Clutha and Kawarau rivers, Cromwell was originally known as 'The Junction,'
Gold was first discovered in 1862 below the Junction by two miners, Hartley and Reilly. The word of a gold strike in the area saw an influx of several thousand miners to the region.
As the gold prospecting declined in success interests changed to farming and fruit growing. Cromwell became the service centre for the area.
In the 1980's, then Prime Minister, Rob Muldoon instigated the creation of the Clyde Dam as a part of his "Think Big" ideology.
The dam's activation flooded the Clutha River creating Lake Dunstan and submerging some of Cromwell's original streets beneath meters of water. This saw the relocation of many historic buildings prior to flooding to safe ground in that which is now called 'Old Cromwell'.
The creation of Lake Dunstan has however brought many new activities to the area such as water skiing, boating and rowing as well as lake side picnicking, swimming and fishing just to name a few!