the town was established along the old hume highway and the highway now bypasses the outskirts of the town. the post office opened on 2 june 1858. it is frequently stated as having been named for a village in gloucestershire by henry kent hughes. the name "avenel" also appears in sir walter scott's "tales from benedictine sources": "the monastery" (1820) and "the abbot" (1820) as the name of a castle and family. hughes settled there in 1838, laid out the future town, and named the hughes creek, which flows through it.