First settled in 1853 after a rush to a rich claim nearby, the town reached the height of its prosperity in the 1880s. But Homebush owed its existence entirely to the mines: when the gold ran out and the mines closed the town rapidly declined and died. All that remains of a once-flourishing community is a school building and some mullock heaps.
Planned development began in June 1860 when, following a second rush to the diggings, Homebush was surveyed and its streets laid out. Three churches were built, and within little more than a decade the town could boast its own railway station. By 1884 Homebush was firmly established as a business centre, with two agents, a bootmaker, a butcher, two carpenters, two contractors, nine farmers, a gardener, a registrar, a station master, a storekeeper, and a teacher. Lower Homebush, three miles away, where the commercial life of the town had moved closer to some deep-lead mines, had a blacksmith, two bootmakers, a carpenter, a draper, an engineer, two farmers, three hotels, two mining managers, and twelve stores.
The rise and decline of Homebush and Lower Homebush can be seen in the history of its schools. In 1861 a Church of England school opened, with classes held in a rented building. Over the next two decades the number of students increased to more than two hundred and two more schools were built, one at Homebush, with another, even bigger, at Lower Homebush. But by 1903 the average attendance at the Lower Homebush school was only forty. Gold yields had dropped and mining companies had ceased operating. Homebush School closed permanently in 1908. Lower Homebush School had small enrolments from the 1930s, and by 1967 it too had closed. By then of course the Homebush School had long gone.