By 1880 over 1000 people had settled in Knysna. In 1882, the settlements of Newhaven, Melville and the wedge of land between the two villages were amalgamated to form the municipality of ‘The Knysna’, named after the Knysna River.
Knysna’s timber industry peaked when George Parkes arrived from Britain and saw the opportunity to use the hardwoods of the Knysna Forest for export to elsewhere in the country, and even overseas. He established the Knysna Forest Company, later renamed Geo. Parkes and Sons Ltd, which is still trading to this day.