 Gold was discovered in 1858 and the town became a service centre for diggers travelling to Bendigo and Castlemaine.Malmesbury Post Office opened on 9 November 1854, closed within two months, reopened in 1856, and was renamed Malmsbury around 1896, although the name Malmesbury remains in occasional use.Edward Davy, who invented the electric relay, making long-distance telegraphy possible, was mayor of Malmsbury three times in the mid-nineteenth century.