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Loveday was the site of one of Australia's largest internment camps during World War 2. At its peak, housing 5,380 German, Japanese and Italian internees as well as over 1,500 Australian Military personnel. A well-managed and very productive enterprise, planting, irrigating and cultivating, approximately 180 hectares of fruit, vegetables, and seeds and breeding pigs & poultry to feed the nation and allied forces. Work gangs carried out maintenance on roads, mended army tents and made soap. Wood lots provided fuel for the pumping stations in the area. Opium poppies for the production of morphine required medicinally by the Armed Forces, was also grown there. The WW2 Internment Camp closed in 1946, however, the ruins still remain and can be viewed by contacting the Barmera Visitor Information Centre.

Loveday is also home to the popular Loveday 4x4 Adventure Park which includes campsites, 4 Wheel Drive tracks and its own tavern complete with children's playground.