In 1896 three distilleries were planned for Knockando parish; Tamdhu, Knockando and Imperial. The moving force behind Tamdhu was William Grant, a Director of Highland Distilleries and agent for the Caledonian Bank in Elgin. The place he chose beside the Knockando Burn was well- supplied with pure water from springs, and according to local tradition had been used by illicit distillers in days gone by.
Highland (now Edrington) purchased it outright in 1899, but like many sites it had a rocky time, closing from 1927 and remaining silent for two decades. The Edrington Group that had taken over Highland Distillers in 1999 sold the Tamdhu Distillery and all stocks to Ian Macleod Distillers in 2011. They decided to reopen the still fully operative distillery and recreate the Tamdhu brand.