CLUNES' first Booktown For A Day on Sunday was a 'gold' event with over 6000 visitors from the surrounding area, Melbourne and interstate, according to organisers.
The town enjoyed a day-long stream of book browsers who filled the streets.
The winner of the rare book, Graham Custance from Blackburn, received a 1916 first edition copy of an illustrated Snuggle Pot and Cuddle Pie by May Gibbs.
The book had specifically been returned to Australia from Oxford, England, for the event.
Mr Custance, who was visiting with Clunes resident Aldo Malavisi for the weekend, considered himself a "lucky fossicker" after he deciphered the clues that were presented in various spots around Clunes throughout the day.
He phoned his "literature mad" 16-year-old daughter Lauren who was delighted with the news.
"This will end up being an heirloom in the family," she said.
Barry Jones, author of a recently published autobiography, A Thinking Reed, spoke to a standing-room only audience at the Clunes event.
In a short ceremony afterwards, Mr Jones was presented with a scroll that had been sent to Clunes from Hay on Wye, the first Booktown which was founded in Wales in the 1960s. Jones was declared Sir Barry, Knight of Clunes
in the Kingdom of Hay on Wye.
Over 50 book vendors from Victoria and interstate set up temporary shops in the town.
Visitors spent the day browsing for books of all types including rare antiquarian and first edition volumes.
Many of the old buildings and shops were opened for the booktown event for the first time in more than 20 years.