Some prefer to believe the town was named after an 1852 song "Lilly Dale" by H. S. Thompson but evidence shows it was named after an early settler, Lilly de Castella. Most of Victoria has been named after prominent citizens or with traditional Aboriginal names. Lilly de Castella was one of four daughters of Colonel Joseph Anderson and wife Mary. Joseph Anderson was one of eight nominated members of Victoria's first parliament. Lilly was born Elizabeth Anne on Norfolk Island, where her father was commandant from 1835 to 1839. Lilly was a typical Victorian pet-name for girls named Elizabeth. The family settled in South Yarra in 1848 and were friends of Lieutenant-Governor Charles La Trobe and his wife Sophie. Mary Anderson was a pioneer member of the Melbourne Mechanics Institute. Colonel Anderson was also a close friend of Crown Surveyor Clement Hodgkinson and was a pallbearer at the funeral of Governor Hotham, who died on 31 December 1855. Lilly married Paul de Castella in 1856; Colonel Anderson co-owned the couple's Yering Station. Anderson Street in Lilydale was named after the Colonel, and the parallel Castella Street was named after his son-in-law, Lilly's husband Paul.
History
Lillydale township was surveyed in 1860 by Clement Hodgkinson. The Post Office opened on 1 September 1860 as Brushy Creek, and was renamed Lillydale in 1861 and Lilydale around 1872. The Lilydale Hotel opened in 1862. The railway came to town with the opening of the station in 1882. The first town hall was built in 1888 along with the Mechanics Institute Free Library building. Lilydale has an active CFA volunteer fire brigade, first established in 1905. There was an unregistered brigade dating back to the 1880s prior to this. The brigade also has a satellite station in Chirnside Park.
Commercial area
Lilydale has franchises of McDonald's and KFC. Lilydale also has shopping centres named 'Lilydale Marketplace' and 'The Lilydale Village' as well as shops on both sides of Main Street. There is also a 'Baby Bunnings', and many other commercial shops.
runs through Lilydale having its source in the nearby Dandenong Ranges and is a tributary of the Yarra River. Lilydale is well known for Lillydale Lake, a recreational area where children play and learn about the wetlands environment. Surrounding the lake are modern housing estates, such as Lakeview Estate.
Cultural references
A popular ground covering product from the long established quarry on the edge of the town, used in pathways, driveways, backyards and composed of crushed limestone of varying grades, is commercially and popularly known as "Lilydale Toppings". The town is mentioned briefly in the Augie March song The Cold Acre. In Miss Fisher's Murder Mysteries Series 3 episode Death at the Grand, Phryne arranges to have her troublesome father, Henry, housed there until leaving the country, saying "Even you can't get yourself into trouble in Lilydale."
Sport
The suburb has an Australian Rules football team, The Lilydale Falcons, competing in the Eastern Football League. It also has a cricket team, competing in the Ringwood District Cricket Association.
Notable people
Notable people from or having lived in Lilydale include: