Yarra Bend Asylum was the first permanent institution established in Victoria that was devoted to the treatment of the mentally ill. It opened in 1848 as a ward of the Asylum at Tarban Creek in New South Wales. It was not officially called Yarra Bend Asylum until July 1851 when the Port Phillip District separated from the Colony of New South Wales. Prior to the establishment of Yarra Bend, lunatic patients had been kept in the District's gaols. Yarra Bend was proclaimed an Asylum under the provisions of the Lunacy Statute 1867 (No.309) in the Government Gazette in October 1867.