HistoryThe suburb of Waterfall borders directly on to the Royal National Park which was dedicated in 1879. It became an important location when the railway to the South coast was being constructed in the late 1880s and was settled as a railway town. When the railway line opened in 1886 the area was then used as a major railway depot for steam locomotives which took on coal and water. Most of the residents were employed by the railway. It was decided to construct a sanatorium in 1909 to cater for the needs of those suffering with TB (tuberculosis) and Waterfall was the preferred location because it was both isolated and close to the park which provided a healthy environment. Transport to and from the site for both workers and later visitors to the hospital was provided by well known local Sarah Stork. There were few amenities in the area served only by a general store in Waterfall which also operated as a post office. In the 1940s it was run by Alan and Dulcie Benn. They ran the store until 1972. Alan Benn served as a councillor in the 1950s to the 1970s. The sanatorium closed in 1958. It was re-opened as a hospital in the same year for people suffering chronic disease and for the aged. In the late 1960s the township was to affected by plans to widen the Princes Highway in conjunction with the construction of a toll road to the top of Bulli Pass. Construction of the Waterfall-Bulli Pass section started in 1970. In 1972 the Department of Main Roads made massive changes to Waterfall which required the demolition of Benn's Store. The road was completed and opened in 1975. The highway then divided the township of Waterfall from the railway line connected only by an overhead road bridge.
