Newcastle is a moderately industrial town situated along the Ncandu River, with a part of the Drakensberg on its west side. The town used to be known as Post Halt Two between Durban and Johannesburg, placed in 1854 by the Surveyor General of the Natal Colony, Dr PC Sutherland. It was later known as the Waterfall River Township, and then Newcastle was founded on the site in 1864 and named after the Earl of Newcastle. The area has maize, livestock and dairy farmers, as well as coal mining.