A small Hamilton Highway town supporting the local pastoral community, Derrinallum is surrounded by the volcanic plains characteristic of Victoria’s Western District.
The signatures that sets Derrinallum apart are the historic dry stone walls just to the west of the town. The town is also blessed with two aquatic recreational and fishing areas - Deep Lake, 5km to the north-west, and Lake Toliorook, which is a similar distance to the south-east.
The dominant feature on the local landscape is Mt Elephant, a volcanic core which rises sharply from the plains. The unusually shaped mountain is owned by the Derrinallum community and is known widely as 'the lighthouse of the western district'.
The original trail now followed by the highway was known as The Wooltrack because of the procession of bullock wagons hauling bales from the shearing sheds of the western sheep stations to the clearing houses and docks of Geelong.
The two-storey, bluestone Elephant Bridge Hotel at nearby Darlington has been listed by the National Trust.