Adelaide was founded in 1834 as a military post on the banks of the Koonap River. It was originally called Fort Adelaide after Queen Adelaide, the wife of King William IV. The Dutch Reformed Church started selling plots in 1849, though very few were bought until 1859. The town lies at the foothill of the Great Winterberg, the highest peak in the Amathole range. There are several hiking areas through the mountains and the town is surrounded by several game reserves, game farms and hunting concessions.