The article focuses on the Phoenix settlement, which Mahatma Gandhi established north of Durban during his formative years in South Africa. The settlement was almost completely destroyed during the so-called Inanda Riots in 1985, after which a large community of African informal settlers moved onto the land and renamed it Bhambayi. In the late 1990s, the settlement was restored and substantially reconstructed. It was opened as a heritage site in February 2000 and now forms an important local tourist attraction. The article explores the meaning of the Phoenix settlement in terms of its tangible and intangible heritage, arguing that this is a highly significant yet ambiguous site. Interviews with a small sample of local community members reveal that younger people have more positive attitudes towards the site, but many associate it exclusively with Indians and elite visitors. As a heritage site, the Gandhi settlement is officially positioned as a symbol of reconciliation and non-violent resistance, but the perception of the surrounding community is closely tied to race relations between Indians and Africans. The site is also overshadowed by its violent recent history, despite the fact that virtually all tangible evidence of the violence has been erased through the reconstruction and restoration. The article ends with a set of recommendations on how the presentation and management of the Gandhi settlement and its relationship with the local community could be improved.