Lime and cement manufacturing has a proud history in Otago, with the earliest lime kilns appearing around 1849 at Caversham and Kaikorai in Dunedin . At Dunback or Makareao (to be precise) three well-type kilns were built by the government in 1899. In 1909 these kilns were leased to the then Milburn Lime and Cement Company. They erected a large brick Schmatolla kiln in 1909, elliptical in plan and fired by coal gas. The kiln operated up until 1944 before being left derelict. The quarry which supplied the kiln also supplied the Burnside Cement works from 1929 up until its closure in 1988. The quarry was shifted to the top of the hill in the 1950s.