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The town of Nairne was founded by Scottish sheep farmer, Matthew Smillie in 1839. He named it after his wife whose maiden name was Nairne. Matthew and his wife were old friends of the Elder family. South Australia's first flour mill was built just outside Nairne in 1841. A new steam driven mill was built in 1857 and operated by John Dunn from 1864. It was named the Albert Mill for the husband of Queen Victoria.
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