Land was developed for housing outside the walls including the Cornwall Estate, between the Borough Gardens and the Great Western Railway from 1876 and the Prince of Wales Estate from 1880. Land for the Victoria Park Estate was bought in 1896 and building began in 1897, Queen Victoria's Diamond Jubilee year. The lime trees in Queen's Avenue were planted in February 1897.
Poundbury is the western extension of the town, constructed since 1993 according to urban village principles on Duchy of Cornwall land owned by Charles, Prince of Wales. Being developed over 25 years in four phases, it will eventually have 2,500 dwellings and a population of about 6,000. Prince Charles was involved with the development's design. Since 2008, Poundbury has housed the Dorset Fire and Rescue Service headquarters and Dorchester fire station.
Dorchester became Dorset's first Official Transition Initiative in 2008 as part of the Transition Towns concept. Transition Town Dorchester is a community response to the challenges and opportunities of Peak Oil and Climate Change.
The Woolworths shop closed in January 2009 after the retail chain entered administration. The store manager
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