11/08/2026
🔐 PRISON BREAKS, NED KELLY RUMOURS… AND A GAOL THAT BECAME A BUTTER FACTORY.
Kilmore’s old bluestone gaol has more than 160 years of stories behind its walls — and some of them are wonderfully strange. 👻
🏛️ KILMORE THROUGH HISTORY | THE FORMER KILMORE GAOL
Built in 1857 at a cost of £4,751, the Former Kilmore Gaol at 8–12 Sutherland Street is one of Kilmore’s most fascinating historic buildings.
According to Kilmore Walk Through History, despite common assumption, Ned Kelly was never housed here — but the gaol certainly had its share of colourful prisoners.
🔓 One was bushranger Lowry, convicted of horse theft and shooting at a constable. After only a couple of weeks, he reportedly tore a blanket into strips, made a rope and escaped over the wall, heading down Piper Street and into the bush — despite being seen making his escape!
🧈 By around 1890, the gaol had an entirely different purpose: a butter factory. Milk arrived from surrounding farms and by rail from Pyalong, with around 600 pounds of butter produced each day.
🧱 And those famous bluestone walls nearly disappeared altogether. In 1910, plans were reported to demolish them and use the stone as road metal. Fortunately, it never happened, and much of the walls remain today.
👻 AND WHAT ABOUT THE GHOSTS?
With more than 160 years of history, the old gaol has naturally collected its share of paranormal tales. Visitors and investigators have reported unexplained sounds, voices, shadows and mysteriously opening doors. These remain folklore and paranormal claims rather than documented history — but they certainly add another layer to the mystery of the place.
Today, the Former Kilmore Gaol is recognised on the Victorian Heritage Database as one of a small group of early Victorian prisons built outside Melbourne.
And when you think about everything these bluestone walls have witnessed — prisoners, escapes, a butter factory, businesses, fire, threatened demolition and generations of local stories — it’s remarkable they are still standing.
Do you remember the Old Kilmore Gaol in one of its later lives? Or does your family have a story connected to it?
And, of course… has anyone ever experienced something a little unusual inside those walls? 👻
We’d love to hear your memories, photographs and stories in the comments.
📖 Source: Kilmore Walk Through History, p. 79 — “8–12 Sutherland Street, Former Kilmore Gaol” (pictured).