After being subdivided, German settlers moved in during the 1870s and called it Friedensthal, meaning Valley of Peace. The river running through the area was named the Rhine. As with most other German names the South Australian Government changed them during the First World War.
Many of the young farmers who settled at Friedensthal came from neighbouring towns such as Lobethal, Springton, Mount Torrens and the Barossa Valley. Among some of the early settlers were members of the Ramm, Jantke, Henzel, Lange, Rochow and Pietch families.
A post office was opened in 1891 and a school in 1894 where Johann F. Schulz became the first teacher. Government tenders to build a new school were advertised in July 1929. A Lutheran congregation was formed in 1891 and a church build by them in 1898.
By 1905 the small town was part of the Caurnamont District Council and its post office was operated by Miss Margaretha A.E. Budrian. The teacher at that time was F.F.B. Budrian and R. Rochow the local Blacksmith.
Farmers listed for 1905 were Carl Aesche, Henry Batten, Carl Gerhardy, A., G. and W. Jantke, G.P. Nagel, P. Nelson, E.F. Peters, F.W. Pfeiffer, G.P. Ramm, J. Ricketts, G. Robinson, Carl Rochow, F. Wendt, Hugo Wiebrecht and E. Winton.
Nearby is the granite quarry Black Hill Rocks which provided an early picnic area. When developed as a quarry it provided material for buildings all over Australia.
One with burials from 1900-2008 (Old) and the other from 1928-2008, (New).