After the jubilee in 1928, there were so few pupils at Mount Duneed and Freshwater Creek schools, the teacher Mr H McGregor held two days at Mount Duneed and three days at Freshwater Creek, alternating every week. Finally in 1939 Mount Duneed closed to re-open after 4 years.
In October 1917 a photographic honour roll containing the photographs of 33 old scholars and three district soldiers of the Mount Duneed school and district was unveiled.
This school was destroyed by fire in January 1944. The fire which started near Waurn Ponds swept over Mount Duneed destroying 14 homesteads, 2 cottages and the Church of England. William Preston, aged 66 who was a farmer was killed in the fire.