Commercial development commenced in `Lower' Fraser Street although by the late 1860s, when mining prosperity peaked, business houses in the central section of Fraser Street were rebuilt and development consolidated. Residential development stayed close to the mines initially (especially on Camp Hill and at North Clunes) but soon spread to South Clunes. Like business premises, residences were often enlarged and Clunes retains many examples of tiny cottages which have been enveloped by later extensions.