Caledon has its own Spa fed by the hot mineral waters. The town hosts the only Casino in the region. A world-renowned botanical garden filled with indigenous wild-flowers particular to the area, hosts a Spring festival each year. A scenic drive through the Hemel and Aarde Valley takes one to the popular seaside resort of Hermanus. The charming villages of Greyton, Napier and Swellendam are also an easy drive away.

As early as 1710, the land at the hot springs was granted to Ferdinand Appel, a well-known Stellenbosch farmer, on condition he established a commercial venture for the use and benefit of the public. Following the establishment of the baths, it was another 100 years before the farming community had grown sufficiently to build a drostdy and a church in the area. Between 1840 and 1860 Caledon had doubled in size. The Overberg today is a prosperous farming area for wheat, barley and sheep with Caledon known as its centre.

The two streets of early Caledon were Church Street, known as the Onder Dorp, and Mill Street known as the Boven Dorp. Mill Street became the new Kaapse wagon-weg when Cape carts and horse-drawn coaches started to replace the ox-wagon. Today, Mill Street is recognized as a valuable Conservation area, in the light of its unique architectural character, dating mainly from the nineteenth and early twentieth centuries. It includes the picturesque Bath River Bridge dating to 1866. The Caledon Museum is filled with artifacts reflecting the heritage of the community.