The town was founded during the Central Otago gold rush in the 1860s, and was named after Alexandra of Denmark. It was known to miners of the day by several names: the "Lower Township", the "Junction Township", and "Manuherikia". (The "Upper Township" was Dunstan, now Clyde.)
Many orchards were destroyed in the 1980s as a result of construction, 10 km upriver, of the Clyde High Dam, which is the country's third largest hydroelectric power station
