30,000 years ago, the sea was about 120 m lower than present. It began rising about 12,000 years ago and reached its present level about 6,000 years ago. Archaeologists have found evidence that Aboriginal people have lived in the area for more than 7,400 years.
Europeans first came to the area by mistake. Captain Reid was sent to Newcastle where coal had been discovered. This was the main source of fuel at the time and he had been given a description of the mouth of the river as having a small island opposite its entrance, and a seam of coal exposed on the southern side of the inlet.
Meeting a group of Awabakal people, they showed him the coal seams in the cliffs.
They used the coal in cooking fires, for heating and also for making weapons and tools. They called coal Nikkin.
He set out in the Martha and hugging the coastline, Reid saw Moon Island and thinking it was Nobbys Head, he sailed into the inlet.