A 110km east of Cape Town on the N2 is the town of Caledon. The town owes its situation to the presense of hot water springs, which were used by the local Khoi-Khoi long before Ferdinus Appel was granted grazing rights at the springs in 1708. A hundred years later the village was established near the site of the springs. In 1810 Mill and Church Streets were laid out and in 1813 the town was renamed in honour of the Govenor, the Earl of Caledon. Caledon is situated in an agricultural region, which produces barley, wheat and wool. Events include the Canola Festival, Caledon Wild Flower Show and the Caledon Christmas Festival.

Accommodation ranges from quaint comfortable B&B's upmarket guest houses, affordable Country Hotels with Backpackers and Health Spa to rustic, charming upmarket farm accommodation. The Southern Associated Maltsters is the only malt producer for the South African lager beer industry and is the largest in the southern hemisphere.