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This modern country town lies on gentle sloping terrain on the southern side of the Namoi River, surrounded by rich agricultural land under which are huge deposits of low ash coal. Gunnedah is known as the "koala capital of the world", and it is estimated that at least 40 live in the urban area of Gunnedah; is it not uncommon to see them even in town. Gunnedah's favourite daughter, the poet Dorothea Mackellar, was inspired to write her epic poem My Country after witnessing the breaking of a prolonged drought.