Stroud is a small country town located in the Karuah River Valley. This picturesque town owes its existence to the first major agricultural enterprise to be attempted in the country; the Australian Agricultural Company (AACo).

This rich historical town has many surviving buildings from the colonial era with some of these still in use today including Stroud House (1827–32); St John's Church (1833) and Quambi School House (late 1830s).

The Post Office (1884) is considered one of the most impressive in the region, with cedar fittings and was restored in 1984. The Court House (built 1876 to replace the 1840s building) now serves as an historical museum run by the Stroud & District Historical Society.