Situated south-west of Bundanoon on the scenic Southern Road, the village of Penrose lies nestled amidst towering pine trees (some over 90 years old), deep gullies and gorges. Settlement began in this area in 1870 after the Sydney to Melbourne railway was laid. At the turn of the century fruit growing was the recognized industry of the district and several orchards still maintain roadside stalls selling fruit and produce when in season. Large areas of state forest have been established and are accessible to the public. The scenic Penrose Forestry Road runs through the forest linking this village to the Hume Highway.