When the British Government annexed Zululand in 1887, several magistracies were established. One of these was named Melmoth after the resident Commissioner and Chief Magistrate of the country.
The high hill country surrounding the village was discovered to be ideal for growing trees, particularly wattle, and in 1926 a factory was established here to process the bark of the wattle trees for a tanning extract.
Melmoth is now the trading centre for a considerable timber industry. The town's economy is still largely dependent on the wattle bark and trees.
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