First settled in the 1850's as a cattle run, from the early 1900s the property was established as a horse stud. The creek and river flats were used for the production of lucerne hay and other fodder for use by the stud. The lower and selected upper areas were used for horse agistment. Upper areas were also used for low intensity grazing of other stock.

Sol Green prominent amongst Australia's racing and bookmaking fraternity in the early 1900's established the property as a Stud, it was said he spent more than Lbs.1000 an acre an extraordinary amount of money at that time.

A tree that Phar Lap stood under when his portrait was painted for the National Gallery, an enormous eucalypt, still exists and stands alone as the central point of the property. The very paddock within which Phar Lap was spelled still exists, as does the stable in which Tommy Woodcock slept whilst tending to Phar Lap's every need. Underbank was also home to Comedy King winner of the 1910 Melbourne Cup amongst many other champions.