The area was first 'settled' in the 1830s when both Ben Boyd and the Imlay Brothers, who were whaling along the coast from southern NSW to northern Victoria, established the Mallacoota Inlet as their major station south of Twofold Bay.
In the early 1840s Captain John Stephenson, who had captained whaling ships along the coast, was been granted the first pastoral run in the district. He is still remembered at Captain Stephenson's Point at the eastern end of Allan Drive.
By the 1880s settlers had moved into the area and commercial fishing had begun with boats being moored in Mallacoota Inlet. At this time it was common for fishing boats from further down to coast to fish the inlet for salmon and bream which was shipped around the coast to Melbourne.
This industry was disrupted in 1894 when gold was discovered in the district. The Spotted Dog Mine was operational for three years.