European settlement of Daly River began in 1865 with the arrival of Boyle Travers Finniss, the first Premier of South Australia and the first Government Resident of the Northern Territory.

A year later, probably aware of the tensions in the area, the Society of Jesus order of the Roman Catholic Church established a mission in the town, introducing Christianity and farming techniques to the local Aboriginal population.

In 1955, the church purchased 4,000 acres (1,600 ha) of land and the Missionaries of the Sacred Heart helped to establish a school and a clinic for the community.

On 28 January 1998, a major natural disaster saw every building in the town inundated and the entire population airlifted to Batchelor during the emergency evacuation.

The floodwaters, fed by heavy rainfall in the wake of Tropical Cyclone Les continued to rise until 3 February, reaching a peak of 16.8 m (55 ft), the highest level recorded to date.

A sealed airstrip at Nauiyu provides for charter and medical evacuation flights, however there are no scheduled air services to the airport, or aircraft regularly based in the town.

The area serviced by the station is 33,000 km2 (13,000 sq mi), and the responsibilities of the Daly River members include Emergency Management and boat access to the communities when the roads are cut by seasonal flooding.

The park is home to saltwater crocodiles, reptiles, spiders, cockatoos, wild pigs, feral Water Buffalo, mangroves, giant bamboos, pandanus and the red kapok tree, Bombax ceiba.