West Toodyay (previously known as Toodyay, Old Toodyay) was the original location of the town of Toodyay, Western Australia. It is situated in the Toodyay valley, 85 kilometres (53 mi) north east of Perth. The Toodyay valley, discovered by Ensign Robert Dale in 1831, was opened up for settlement in 1836. The original site for the town of Toodyay was determined in 1836 and its boundaries were finalized 1838. The first survey of the town was carried out in 1849. After several serious floods, the decision was made to move the town of Toodyay to higher ground. In 1860, the new town of Newcastle was established 3 miles (4.8 km) further upstream. Newcastle was renamed in 1910 to Toodyay, and the original site became known as West Toodyay.
The town of Toodyay was established on the banks of the Avon River where the valley gave way to gentle slopes of fertile soils with hills on all sides. The original site for the town of Toodyay was determined by Governor James Stirling in 1836. The survey of its boundaries was finalised in December 1838 after the necessary adjustments had been made to the boundaries of two neighbouring land grants.
Apart from the erection of the Military Barracks on the left bank of the Avon River, little development of the town could take place until after the first official survey had been carried out. Assistant Surveyor Arthur Hillman carried out this survey in September 1849 at a time when the Avon River was in flood. Most of the subsequent development took place along the right bank of the Avon River. River Terrace was aligned to the curve of the river's course and was crossed by six streets. Town lots along River Terrace were numbered R1 to R42, "R" indicating the right bank of the river. Along the ridge behind, North St and Fitzgerald Terrace paralleled the curve of River Terrace.
Town development quickened after the arrival of the convict era and the setting up of the Toodyay Convict Hiring Depot at the townsite in 1851. A total of three inns were established: The Royal Oak, The Highland Laddie and The Queen's Head. A number of homes, stores, schools and a church were built.