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The approximate location of the southern highlands in New South Wales

The Southern Highlands is a geographical area in New South Wales, Australia, 103km southwest of Sydney. It sits between 500 and 900 metres above sea level, forming part of the Great Dividing Range. Like other regions along this plateau such as the Blue Mountains to the north and the Australian Alps to the south, the Southern Highlands is known for its cool climate.

The term specifically refers to the area centred around the towns of Mittagong, Bowral, Moss Vale, and Bundanoon. Smaller villages are spread inbetween and around these four main centres. Towns like Marulan to the south are often confused as being part of the 'Highlands' (as it is known to the locals), but would actually be more closely associated with the City of Goulburn and the Southern Tablelands.

While bustling little towns in the Southern Highlands like Mittagong, Bowral and Moss Vale are well known tourist spots and the weekend havens of affluent Sydneysiders, the Southern Villages have had a boom-and-bust economic cycle. Bundanoon, for example, became a well-known tourist destination early in the 20th Century; its picturesque nature and the exquisite scenery of what is now Morton National Park, combined with being a stop on the Main Southern Railway, made it a pleasant and convenient holiday area for city dwellers who could not afford the upscale accommodation at the popular Blue Mountains resort area. By the 1950s, however, changes in lifestyle, particularly the affordability of the motor car, gave city folk many more options for weekend getaways, and Bundanoon declined.

Recently, an ever-expanding Sydney with record high real estate prices has renewed interest in the Southern Highlands, and the area is undergoing a resurgence. Mulwaree Shire was, until its dissolution early in 2004, the fastest growing Shire in NSW outside of Sydney itself. Tallong, an otherwise insignificant village known only for having the oldest continuous one-teacher schoolhouse in Australia, and for a devastating bushfire in 1965 that crippled its economy, has seen a dramatic increase in real estate prices over the last five years, with the price of vacant land almost tripling in areas close to the village.

The Southern Highlands is within commuting distance of Sydney, Goulburn and Canberra, the nation’s capital, and this may account for its renewed popularity.

Local attitudes towards the encroachment of civilization are varied, with citizens apparently desiring to have the conveniences of modern life, while living somewhat removed from it. The recent decision by Michael Costa, the Transportation Minister, for example, to reduce service on CityRail’s Southern Highlands Line, aroused a storm of protest from indignant commuters. A proposal for an internet café in Marulan was received enthusiastically by its villagers. By contrast, an announced proposal for the building of Sydney’s second airport near the village of Sutton Forest met with strong opposition. Many small businesses and single proprietors in the area welcomed the proposal, with its promise of increased trade, but other individuals, fearing the noise, pollution and increased congestion that an airport would bring, organized a citizens committee against the proposed scheme.

The villages attract visitors who travel considerable distances for a few special events. In April, it’s the annual Brigadoon Festival in Bundanoon, which is also home to the spring Garden Ramble; Tallong holds a popular Trail Ride in aid of the Rural Fire Brigade each April; Wingello hosts Sled Dog Trials in June, and Bowral hosts the annual Tulip Time in September.

• Official website for Tourism Southern Highlands