Situated just south of the Blue Mountains and isolated by the extensive arms of Lake Burragorang. Was found in 1802 and the first building was constructed in Became home to around 2000 people in its prime times of mining Silver and Lead.

In 1898 the first significant silver mining operations began however the decline began in 1925 as the metal prices began to fall and the miners began to complain and strike over wages. The mines effectively closed in Access became a problem as their main route was cut off in order to build Warragamba Dam which left only one was in and out of this small town. Because it was so isolated Yerranderie suffered more than most outback countries with the extremes of weather – bushfires, flooding and drought. In 1958 Burragorang Valley flooded which led to the final residents leaving.

It has now been handed over to NSW National Parks after an attempt by Val Lhuede to restore Yearranderie as she saw its natural beauty. There are some surviving buildings which can be visited and looked at. The old Post office has been set out as a museum. People can go there to camp and have a look around as it is a very beautiful, quiet and isolated place. Many scenic bushwalk routes surround the area such as walking up to the peak to not only get a good view of the town but also to see Lake Burragorang. As it is now known as a ghost town, ghost tours are also offered.