Near the north-west shores of Lake Macquarie, Teralba is on the main rail line linking Sydney and Newcastle, which is just a few stations and about 30km away to the north-east. Lake Macquarie was discovered in 1800 and was christened Reid's Mistake after Captain William Reid mistakenly entered the lake, thinking it was the Hunter River. Aboard his thirty tonne schooner, Martha, Reid had been sent to take a load of coal from the newly-discovered Hunter River back to Sydney. Thinking he had found his destination, he entered the channel at Swansea, where Lake Macquarie meets the Pacific Ocean, and discovered his error - and what is now known as Lake Macquarie.
The name Reid's Mistake was preserved until 1826 when it was officially changed to honour Governor Lachlan Macquarie. The southern headland of the Lake however retained the name and is still called Reid's Mistake. Teralba is certainly well positioned for the holiday-maker. There are the aquatic delights of huge Lake Macquarie - fishing, sailing, boating and swimming - there are Newcastle’s beaches, restaurants, shopping and nightlife just up the road, and it’s only a 30-minutes’ drive or so into the glorious Hunter Valley, with its world-renowned vineyards, restaurants and horse studs.