The Dereel Lagoon (also known as the swamp) was a racecourse in the 1930s.
Sometime during the later 1930s it reverted back to being swamp land.
In the 1980s it was leased by the Mellington family to graze stock on during the dry summer months and was routinely set ablaze in controlled burns in an effort to reduce the build up of dangerous amounts of fire load.
Most recently the swamp is now a nature reserve and has a walking track around it.
The Lagoon can be accessed at the end of Kleins Road or via Swamp Road past the CFA shed and community centre.