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Following the arrival of the Leslie brothers in the Darling Downs in 1840 a settlement developed along a stock route at Canal Creek. The township was named Leyburn in 1853 and a town survey was undertaken in 1857.
Leyburn's location along the stock route resulted in the development of infrastructure in the town. Leyburn became a mail centre in 1852 and from 1861 Courts of Petty Sessions were held in the town. A courthouse was constructed in town in 1867.
A National School opened in temporary premises in 1861. A purpose-built, timber schoolhouse was opened in 1865.
Leyburn's importance declined when the town was bypassed by the railway, which linked Toowoomba and Dalby in 1868 and then Toowoomba and Warwick in 1871. Road traffic to Goondiwindi continued to pass through Leyburn until the construction of the line between Warwick and Goondiwindi in the 1900s.
St Augustine's Anglican Church was built at Leyburn in 1871, to a design of architect RG Suter. Anglican Church services had been held at various locations at the Leyburn townsite since the 1840s, including in pubs and at the courthouse.
A short-lived gold rush occurred at Canal Creek in 1871-72.
Towards the end of WWII the secret RAAF 200 Liberator Special Duties Flight and Z Special unit were stationed in Leyburn. A memorial commemorating Z Force servicemen who lost their lives in WWII now stands in Liberator Park
In 1949 the Leyburn airstrip was used as the site of the first Australian Motor Racing Grand Prix held in Queensland.
Leyburn is today a tiny township located around 50 kilometres north-west of Warwick and 219 kilometres south-west of Brisbane.