In the 1850s, the district was generally known as the Mount Franklin goldfield but, in 1875, the township of Dry Diggings was surveyed and proclaimed. It is located along the Daylesford-Castlemaine Road (now the Midland Highway) near the intersection by the Sawpit Gully Road, about eight kilometres from Daylesford.
‘Dry Diggings’ was also a term used to describe the alluvial gold diggings, in the Mount Franklin area, affected by the lack of surface water required to wash paydirt.