Dereel is a small town to the south of Ballarat on the Ballarat to Cressy Road. In its early days miners had worked the Spring Creek Goldfields in the area since 1853. In 1864 a common school was provided in the town and closed in the 1930s.In 1959 State School Dereel reopened following support from parents in the area. On 16 March, 1874 the residents at Dereel petitioned the Victorian Department of Lands and Survey for the reservation of a site for a cemetery to be established. The petition was signed by sixty residents of the parishes of Dereel and Corindhap. The site that was requested was of seven acres on the Rokewood to Ballarat Road, to the south of the town. On 16 July, 1874 the Governor in Council approved that seven acres be temporarily reserved and the site was gazetted on 24 July, 1874 [VGG 1874/1387]. The records noted that by 1934 there had been no burials in the cemetery and on 10 July, 1935 the Government Gazette noted the revocation of the cemetery.