South Granville is a separate suburb with the distinguishing feature of a light industrial area. Lisgar, Redfern, Heath and Mona Streets form the approximate border between Granville and South Granville. The Duck River provides a boundary with Auburn, to the east.

Granville was named in 1880, after the British Colonial Secretary, the Granville Leveson-Gower, 2nd Earl Granville.

The area evolved primarily after 1855, when it became the final stop of the first railway line of New South Wales. The Sydney-Parramatta Line ran from Sydney terminus, just south from today's Central railway station to the Granville area which was originally known as 'Parramatta Junction'. This led to the development of this area, which attracted speculators and some local industries.

In the early days of European settlement, timber was harvested to fuel the steam engines in Sydney and Parramatta. By the 1860s, the supply of timber was exhausted. The remainder was used by scavengers who made a living by collecting firewood. Wattle bark found use with tanners and the bark from stringybark trees was used for roofing of huts. In 1862, a major estate, Drainville, became subject to a mortgagee sale and subdivided for villa homes, and small agricultures. At the end of the decade a Tweed Mill was established, which was steam powered using water from the Duck River.

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