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The town's history is poorly recorded and is held mostly by local people and their stories of the past.
Information on the town is available on signs throughout the forests and hills.
The Mourne Mountains is the setting for many local myths and legends.
There are stories of ' The Blue Lady ', a woman abandoned by her husband who's ghost still haunts the mountains, and more recently the idea of a wild cat living in the Mournes.
Many of the stories although have true origins are only folklore and give many of the towns attractions their names, such as Maggie's Leap being named after a local girl called Maggie, who leapt over the impressive chasm to her death while fleeing soldiers with a basket of eggs.
Many other places in the Newcastle area get their names from other sources, ' The Brandy Pad ', a popular spot in the mountains is named so because of the illegal brandy smuggling that took place through the area.
Another example would be the Bogey Hill just above the harbour at the Southern end of the town, which is named after the carts that carried Mourne granite from the quarry on Thomas ' Mountain down to the harbour.
In 1897, T. R. H the Duke and Duchess of York ( George V and Queen Mary ), grandparents to Elizabeth II, visited Newcastle to open the Slieve Donard Hotel.
Afterwards they visited Hugh Annesley, 5th Earl Annesley at Castlewellan Castle.

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