Caversham is one of the older suburbs of the South Island New Zealand city of Dunedin. It is sited at the western edge of the city's central plain at the mouth of the steep Caversham Valley, which rises to the saddle of Lookout Point. Major road and rail routes south lie nearby; the South Island Main Trunk railway runs through the suburb, and a bypass skirts its main retail area, connecting Dunedin's one-way street system with the Dunedin Southern Motorway. The suburb is linked by several bus routes to its neighbouring suburbs and central Dunedin. The suburb was founded by wealthy pioneer William Henry Valpy, and its name reflects his Berkshire heritage. It grew rapidly during the Central Otago Gold Rush of the 1860s due to its location on routes south to the Otago hinterland. By the end of the 19th century, Caversham was heavily industrialised, and its population included many skilled or semi-skilled tradespeople