The co-proprietor of St Andrew's Inn restaurant and accommodation establishment, Greg Wallis, has lived with his wife Fiona in the town for five years.
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Originally from Adelaide, he is another of those mainlanders who are attracted to the State by the laid-back lifestyle.
Left derelict for at least 15 years, St Andrew's Inn, a former coaching inn built in 1835, was resurrected in 1972.
Next door is Cleveland House, formerly the Bald Face Stag Inn, built around 1830 and now a gallery.
It was here that the murder took place. Bushrangers bailed up the licensee and guests and one was shot. The culprits were arrested and hanged for murder.
Mr Wallis's historical research has revealed that nearby Epping Forest, an infamous haunt of bushrangers, struck fear into the hearts of coach drivers to the extent that they would gather there until a number could form a convoy.
St Andrew's has its own resident ghost, "Lucy", reputed to waylay unwary men on the stairway and rob them of their clothes, folding them neatly and leaving them on the stairs - or so the story goes.
Mr Wallis has seen no sign of her but the couple have heard other "visitors". "We have heard voices of people just gently speaking downstairs - it sounds like half a dozen people," he said.
Mr Wallis is unclear about when the town started to decline, but the community and Cleveland Progress Association are now trying to "pick up the pieces".
A major problem is the lack of an 80kmh speed limit, which Mr Wallis said deterred tourists from stopping, and making pulling out like Russian roulette.
"An 80kmh limit is a must for the future of Cleveland," Mr Wallis said. "We would like to plant attractive trees as a corridor to make an attractive entrance.
"And a golf course would be fantastic - St Andrews (in Scotland) being the home of golf."