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Benalla is noted for one of the finest displays of rose in the state, with 2000 varieties of rose blooms. Known as 'The Rose City on the Lake', the rose gardens were established in 1949 to provide a picturesque site for the modern Benalla Art Gallery, which over looks Lake Benalla. Swimming and sailing are popular leisure activities on the lake, artificially created by damming the Broken River in 1974. On the foreshore, opposite the gallery, is a fascinating Ceramic Mural featuring 1500 ceramic tiles made by many of Australia's leading potters as well as school children from the district.