In 1831, J.B. Montefiore was granted 5120 acres on the northern bank of the Macquarie River. In 1840 he subdivided the western section of the estate and a private village known as Montefiores was established. All westbound traffic passed through the village's main thoroughfare, Gipps St. Only a few buildings remain, most notably an inn thought to have been the Lion of Waterloo Hotel which was licensed in 1842, making it the oldest licensed hotel west of the Blue Mountains that is still standing.

Montefiores' greatest claim to fame is that in 1854 the last duel known to have been fought in Australia was waged with pistols near the Lion of Waterloo. A monument to this duel can be found in Teamsters Park across the road from the Tavern.

Montefiores is a lovely village that is particularly pretty in spring and autumn with many well established gardens and trees coming to life. The village still has a rural feel and is an interesting mixture of new and old dwellings.

Quains Corner Store, on the corner of the Mitchell Highway and Montefiores Street, dates back to the early 1900's. It is a lovely old time store.