Clyde grew up around the former settlement of Dunstan during the Central Otago goldrush of the 1860s, when it could once claim to be the most populous in New Zealand during the height of gold fever. More recently the town has been known for the Clyde Dam, a giant hydroelectric dam at the north end of the town, behind which lies Lake Dunstan.br/br/Clyde is a popular holiday spot, lying at the western end of the Otago Central Rail Trail. The location is particularly attractive to those visiting the region's many vineyards and orchards.