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The town of Gracemere is situated on the Capricorn Highway in Central Queensland and about 11 kilometres southwest of Rockhampton city centre. This proximity has led to Gracemere becoming a dormitory suburb, with its residents commuting to work in Rockhampton. History states that the Archer brothers – among the earliest European settlers in Queensland – arrived in the area in 1853 looking for pastures for their sheep, and settled near a small lake that they eventually called Gracemere. While the town has a lower industry level compared to neighbouring Rockhampton, Gracemere is known for grazing of beef cattle, and is home to The Gracemere Saleyards, the largest cattle sales facility in the Southern Hemisphere.

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