Shire of Nillumbik: History
=== Formation ===
In the early 1980s, a group known as the "Rural Shire Action Committee" pushed for the creation of a "Green Wedge" shire in the area. This was to have had similar boundaries to modern Nillumbik, but would have excluded the non-Green Wedge-zoned areas of Yarrambat and North Warrandyte and the built-up areas of Diamond Creek, Eltham and Research. The proposal was investigated and reported on by the State Government's Local Government Commission, but ultimately no action was taken.
The concept of the Green Wedge shire re-emerged during the major overhaul of local government in the early 1990s. This time, the proposed boundaries included a sufficient urban population base to sustain key municipal services such as libraries and a pool. In 1994, the Shire of Nillumbik was formed from the merger of:
the Shire of Eltham (less Montmorency, Lower Plenty, and properties accessed from the top of the Great Dividing Range),
the Diamond Creek, Plenty and Yarrambat areas of the Shire of Diamond Valley,
the Christmas Hills and Bend of Islands areas of the Shire of Healesville, and
the Arthurs Creek area and the rural part of Doreen from the City of Whittlesea.
The name "Nillumbik" for the new shire was suggested by the Shire of Diamond Valley; other proposed names included "Shire of Montsalvat" (the government review board's initial proposal) and "Shire of McCubbin" (also put forward by Diamond Valley).
On 13 October 1998, the five councillors of Nillumbik Council were suspended by then Local Government minister Rob Maclellan, with the state government declaring that infighting was affecting the ability of the council to function. The number of councillors was subsequently increased to seven.