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Murraysburg was founded in 1885 as a Dutch Reformed Church parish on the farm Eenzaamheid ('loneliness'). The village was named for the reverend Charles Murray, Dutch Reformed minister at Graaff Reinet, and Barend J. Burger of the farm Vleiplaas who became known as 'father of Murraysburg'.
A condition of the original sale of the residential plots was that every plot had to be fenced in by a quince hedge. This idiosyncrasy ensured that Murraysburg once had the longest quince hedging in the world. The Murraysberg district is known for the quality of its wool and mohair.
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