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In March 1850, Mr. W. Campbell of Strath Loddon found on the station of Mr. Donald Cameron, of Clunes several minute pieces of native gold in quartz. This was concealed at the time but on 10 January 1851, Campbell disclosed it.
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A licence fee of 30 shillings per month was introduced snd the penalty for mining without a licence being £6 for the first offence and afterwards imprisonment for terms up to six months.
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Governer Hotham was the man to introduce license checks, and came into power in June 1854
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Governor Hotham introduced license checks twice a week for all miners
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Scottish miner James Scobie was murdered at the Eureka Hotel
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The miners rioted and Bentley and his wife fled for their lives as the hotel was burnt down by the angry mob. A small group of soldiers were unable to suppress the riot. Three diggers were arrested and charged with arson for being apart of setting fire to the hotel.
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The ten thousand miners demand release for the 3 miners arrested for burning the hotel.
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A large meeting of miners took place and they publicly burnt their license
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The Battle of Eureka Stockade (by which the rebellion is popularly known) was fought between miners and the Colonial forces of Australia on 3 December 1854 at Eureka Lead and named for the stockade structure erected by miners during the conflict.The diggers were outnumbered and the battle was over in twenty minutes.
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In 1855 Peter Lalor later became the first MLC (Member of the Legislative Council) for the seat of Ballarat. The Ballarat miners were given eight representatives on the Legislative Council.
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Miners recieved the right to vote ater a law was passed and the mining tax was abolished.