A former gold mining town, Talbot is located 159km north west of Melbourne and midway between Maryborough and Clunes.

Alexander McCallum was the first European settler to the area and established a pastoral property in 1839 which he called "Dunach Forrest". Gold was first found in "Back Creek" in 1854. After the "Scandanavian Rush" of 1859, a survey was carried out. A visit from the governor of Victoria in 1861 the name of the settlement was renamed in honour of an English peer, Talbot.

Initially there were 15,000 people on the settlement with five banks, an approximated 49 drinking establishments, a brewery, and numerous stores and businesses along six streets. By the 1860's the population dropped to around 3000 or 4000 by which time bluestone and brick establishments had replaced the timber and canvas.

By the turn of the century the mining had declined as did the population, to around 1300. A brief revival occured between 1934 and 1940 when one of the mines was re-opened. Today, given it's location 'off the beaten track', Talbot may seem empty and deserted.

The Talbot Yabbie Festival is an annual event, attracting visitors from near by towns and cities.