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Knysna was named after the river Knysna and lies on the coast in the western Cape.
In 1878, gold was discovered in the Karatara River, near Ruigtevlei. Prospectors settled in the Millwood forrest and the settlement grew into a bsmall town. Millwood was declared a gold field, the first in South Africa. The prospecting generated little profit and soon the settlers dwindled and some moved to Knysna. One of the buildings, relocated from Millward and called 'Millwood House' is now a museum.
By the 1880s the town had over 1,000 inhabitants.
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