The suburb is often referred to as the "Toorak of the Yarra Valley" (Sir Peter Taylor of Lyndhurst) as it is the choice location for wealthier retirees. Gruyere has a strong farming / agricultural roots with many local farmers with a variety of products such as apples, pears and cattle.
The town is named for a variety of cheese[citation needed], as the area's history is in the dairy industry. Cahillton Post Office first opened on 20 August 1892. It was renamed Gruyere in 1950 and closed in 1960.[2]
Many argue that the name of the area and subsequently, the town, is actually "Warramate", in reference to the Warramate Hills.[citation needed]
It is a small town area on Killara Road contains a recreation reserve, community hall, primary school and CFA fire station. Several wineries are located within Gruyere.