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Some members of the Ferny Creek Horticultural Society formed the Australian Rhododendron Society in 1960 and approached the Forests Commission for a suitable site to establish a rhododendron garden. A 20 ha site, extended to 40 ha in 1975, was selected from the Olinda State Forest on the eastern ridge of Mount Dandenong. In 1995, the National Rhododendron Gardens came under the management of Melbourne Parks and Waterways (now Parks Victoria).
The gardens are a combination of individual gardens and spaces, each different. Each area, however, contains rhododendrons chosen for their growth habit and their ability to fit in with the other plants of that garden.