Kuala Lipis developed as an early trading centre for gold and forest products and became the state capital from 1898 to 1955. The town was established in 1863, with most commercial activity conducted from rafthouses moored along the Jelai River. In 1888, permanent buildings were erected and businesses relocated to their present location. The compact town centre is lined with old two-storey shophouses, typical of Malaysian towns. A roadside marker in front of the Post Office indicates the town’s importance when it was the state capital Kuala Lipis, located where the Lipis and Jelai Rivers meet, and several heritage buildings reflect the town’s past. Lipis District Office, dating to 1919, still houses several government departments. This distinctive red and white building occupies a commanding position above the town.