In 1922, one hundred new settlers arrived to establish farms in the timber country, marking the start of the dairy industry in the South West. Beef and sheep farming, cottage industries, fishing and tourism were the mainstays of Margaret River's economy but these are being overtaken by the wine producing industry which is fast becoming the major attraction of the region. Vineyards and wineries are open to the public for tastings and sales. Information is available from the tourist bureau.

Margaret River is a base for exploring some of the caves which have formed over eons along the coast. Of the 120 - 200 known caves only four have been opened up for the public ­ Yallingup Cave, Mammoth Cave, Jewel and Lake Cave. Yallingup is open daily for self­guided tours, for the others, tour times should be checked with the tourist bureau. Visitors are advised against attempting to explore unmarked caves.

Margaret River has a growing reputation for its superb surfing conditions. Australian and international surf championships have been held here and the 'Margaret River Masters' has become an annual event.

Other local attractions include: The Rotary Park and Historic Settlement, on the river on the northern side of town; 'Ellensbrook', Alfred Bussell's home, now a National Trust property; the Eagles Heritage, a bird of prey wildlife centre on Boodjidup Road; Margaret River Marron Farm, 11 kilometres south­east of the town, where tours explain the breeding of these freshwater crustaceans; Bellview Shell Museum, featuring the largest and best private collection in Australia and the Berry Farm for fresh berries in season and a large selection of natural jams and preserves.

• Name origin: Possibly named in honour of Margaret Wyche, a friend of the Bussell family who was expected to follow them to Australia.