Sofala came about as a direct result of the gold rush which had been triggered when Edward Hargraves discovered gold at Summerhill Creek on 12 February 1851. By June of that year, thousands of people had set up mining operations in the valley, and both the Royal Hotel and a general store were built in 1851 to handle the increased demand. Initially, gold was found in the area known as Gold Point on the Turon River. When the alluvial gold ran out, activity switched to quartz reef mining.[2][3] The town was a centre of opposition to the gold licensing system in New South Wales at the time. A considerable number of the miners were Chinese.[4]
Sofala Public School was established in 1878.[5] There was an Anglican church and a Catholic convent.[6] The Convent opened in 1872 and closed in 1909, although it was a church until 1970.[2]
The Gas Hotel was one of the first two hotels licensed, in 1851. The Royal Hotel was established in 1862. There were two other hotels in 1866, the Sofala Inn and the Barley Mow. The Barley Mow had a Cobb & Co booking office.[2]
Now a private residence, the Post and Telegraph Office, built in 1879, operated until 1989.[2]
Attractions today include the gold-rush-era Sofala Royal Hotel[7] and the old gaol. Sofala is reportedly the oldest surviving gold-rush town in Australia. Small-scale gold workings are still active in the area, with prospectors using metal detectors, gold pans, and sluice boxes to recover small quantities of gold.