Gold was discovered in the Buller in 1858 by a Maori chief. The finding was confirmed when an 1859 survey party found gold in vast quantities but it was another two years before any real interest was shown in claiming the gold.
Miners and their families moved into the area from the West Coast, Nelson and Canterbury, to take up claims along the Buller and its tributaries.
A bustling town sprang up on the Lyell Creek to provide for the miners. In its heyday the town of Lyell had a population of 3,000. It boasted five hotels, two banks, two churches, a post office, a newspaper, school, police station, brewery and courthouse. A small farm over the river supplied the townspeople with milk and fresh vegetables.
After the bulk of the alluvial gold had been won, Lyell enjoyed a second life with the opening of quartz mines.
The town never properly recovered from a disastrous fire in 1896, when lack of water resulted in the loss of 20 buildings. Lyell's last building The Post Office Hotel burned down in 1963 and little remains of the once busy town.
The town site is now an historic reserve.
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