 As the lake became a recreational landmark during the land boom of the Victorian era, which followed the Victorian gold rush days, the area became popular with the city's wealthy.Led by the bluestone gothic Bishop's palace (1876) and later the entrepreneur William Bailey (1883), many large mansions and impressive homes were established in the area close to the lake.The Electric Supply Company of Victoria built a bluestone power station at the corner of Ripon Street and Wendouree Parade in 1901 to replace Ballarat's horse-drawn tramways with a new electric system.