At the turn of the 20th century, Lilydale still lacked a clean and reliable water supply. Diphtheria and typhoid claimed many lives. In 1902, Lilydale folk approved a plan to draw the town’s water from Olinda Creek at the Cascades near Hunter Road.

A natural rocky basin in the creek was supplemented by a three foot high concrete weir. Water was piped from the weir into the Water Race, a two foot deep, unlined channel that followed the contours for some 5.7 km, to a reservoir beside Birmingham Road. The reservoir, which had a clay puddled wall on three sides, was known as the Puddle Dam.

When the water supply was turned on in 1905, an article in the Lilydale Express described the route of the Water Race:

The contour of the Race leads one through some beautiful scenery amongst the hills along the valley of Olinda Creek. Gigantic tree ferns are to be seen everywhere, and the general bush growth of large eucalypti and smaller undergrowth abound on all sides.

After the O'Shannassy Aqueduct came online, it was tapped to supply Lilydale via the Puddle Dam, while the rest of the Water Race fell out of use.

Much of the Water Race alignment can still be followed. The Friends of Water Race and Quinn Reserve care for its historic relics and environment.

The Water Race from a stereographic set, possibly taken by Reg Falkingham. Courtesy Paula Herlihy.

Dam wall and signage at the Puddle Dam on Birmingham Road, opposite Francis Crescent. Photo Ben Ellis.

The Puddle Dam interior has been restored as a wetland. Photo Ben Ellis.