Bundanoon is a small rural village located in the Southern Highlands south of Sydney. In the 1890s, Bundanoon had become a resort due to the crisp air, scenic gorges and only being a short rail journey from Sydney. By the 1930s, the village boasted more than 60 guesthouses. However a decline in popularity occurred in the post war years. Bundanoon is again experiencing a resurgence in popularity.