Graaff-Reinet lies in a bend on the Sundays River at the foot of Spandau Kop, a peak in the Sneeuberg range. Almost the whole of the town is encircled by the Karoo Nature Reserve. This attractive little town, beautifully situated between the foothills of the Great Escarpment and the wide expanses of the Great Karoo, is aptly
named the "Gem of the Karoo".
The town is one of the oldest in the Cape Province, founded by Boer settlers in 1786. It was named after the then Governor of the colony, Cornelis Jacob van de Graaff (1785-91) and his wife Cornelia Reinet. Since in the eyes of the settlers the Cape government did not give them sufficient protection against attacks by the local tribes the inhabitants of Graaff-Reinet drove out the landdrost (government administrator) in 1795 and declared the town to be an independent republic. The Cape government reasserted its authority in the following year, but the town remained a center of unrest. In the mid 19th C many British and German settlers came to the area, and Graaff-Reinet developed into an important economic and commercial center. Other major sources of income are the breeding of angora goats and merino sheep, followed in recent times by ostrich farming and tourism.
Graaff-Reinet is one of the most attractive towns in South Africa, with over 250 lovingly restored old buildings in the architectural styles of the last two centuries, from modest flat-roofed cottages to gabled mansions in Cape Dutch style and ornate Victorian villas. The main street is Church Street, running north-south.