A large part of pastoral Carnegie was the Leman Swamp, a place for peat extraction and, in 1874, a proposed site for sugar beet processing which needed a reliable water supply. By 1876 Ross, who was the promoter of the sugar beet industry, owned or leased all the land presently known as Carnegie. The Rosstown Hotel was operating by 1882 and the primary school opened in 1887. By the turn of the century estates were being opened up in the vicinity of the railway station.
In 1913 the tramline along Glenhuntly Road reached Grange Road, the western edge of Carnegie, and in 1926 it was extended eastwards through the middle of Carnegie to Koornang Road. This tram route served the southern part of Carnegie, which was fully developed by the 1940s. Residential blocks were sufficiently large in many cases to be recycled as sites for flats and home units in the 1960s and 1970s. Carnegie's subdivisions had co-incided with Caulfield council's concern with town planning, chiefly brought about by councillor (Sir) Frederick Eggleston (1909-20), and allotments were deliberately large.
Carnegie has a strip shopping centre along Koornang Road, which has widened footpaths for pedestrianisation. There are two large reserves, Lord Reserve/Koornang Park on the former Leman Swamp (ovals and swimming pool) and Packer Park (ovals and velodrome).
In 1987 the median house price in Carnegie was 22% above the median for metropolitan Melbourne and in 1996 it was 34% above the metropolitan median.
Murray, Peter R., and Wells, John C., "From sand, swamp and heath . . . A History of Caulfield", City of Caulfield, 1980.
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