Bundanoon is a town in the Southern Highlands of New South Wales, Australia, in Wingecarribee Shire. In 2006, Bundanoon had a population of 2,035 people. It is an Aboriginal name meaning "place of deep gullies" and was formerly known as Jordan's Crossing.Bundanoon is colloquially known as Bundy / Bundi.Bundanoon, like its fellow Southern Villages of the Southern Highlands, New South Wales, the town has had a boom-and-bust economic cycle. The town became a well-known tourist destination early in the 20th century; its picturesqueness and the exquisite scenery of what is now Morton National Park, combined with being a stop on the CityRail railway line, made it a pleasant and convenient holiday area for city dwellers who could not afford the more expensive accommodation at the popular Blue Mountains resort area. By the 1950s, however, changes in lifestyle, particularly the affordability of the motor car, gave city dwellers more options, and Bundanoon declined.The Sydney real estate boom of the early 21st century made Bundanoon an affordable haven within commuting distance of the City. Property values increased several-fold, and houses in Bundanoon were selling for over a million dollars by 2007. A moratorium has been placed on the construction of new subdivisions until the area's sewerage system can be upgraded.Bundanoon is known for its annual Garden Ramble, and for its Brigadoon Festival, which attracts tourists from around the world.Bundanoon is the highest point on the Sydney-Melbourne train route. CityRail commuter trains and the Sydney to Canberra express trains ("Explorer") stop at Bundanoon station on request. The next station to the north is Exeter.Bundanoon Youth Hostel (YHA) is located on Railway Avenue, about 500mts NE of the railway station. It is a charming old Edwardian house set on large block of land with well kept gardens and open areas to play outdoor games. It has aspacious verandah to relax on during the summer, and a log fire burns in the lounge during winter. It also has a very well-equipped kitchen. Bundanoon YHA has achieved a 95% "Customer Rating" and has a 3-star AAA Tourism rating.