The 1890's brought dairying to the district, resulting in the establishment of a number of creameries in the area, and a butter factory in Bairnsdale. Many fine buildings were erected in the town during these years including the Courthouse, Mechanics Institute, Railway station and St. John's Anglican Church. The railway came to Bairnsdale in 1888 and beautification of the Main St. gardens commenced in the early 1900's. The average yearly rainfall is 700mm. Bairnsdale is the centre for the major vegetable growing area of the Mitchell Valley and the surrounding sheep, cattle and dairying districts.
Timber is also an important industry in the area.
Retail, hospitality, tourism and service industries and education are major employer sectors in Bairnsdale.