It was first created in 1983, replacing the electorate of Alice Springs, which had been abolished as part of the enlargement of the Assembly.

The city of Alice Springs has traditionally been a strong support base for the conservative Country Liberal Party, and for most of its first 33 years Araluen was one of the CLP's safest seats.

In 2001, the retirement of veteran Cabinet minister Eric Poole and two prominent independent candidacies nearly delivered the seat to Labor.

Carney was re-elected with nearly 70 per cent of the primary vote at the 2008 election, reverting Araluen to its traditional status as a comfortably safe CLP seat.

Carney resigned on 3 September 2010; a by-election to replace her was held on 9 October 2010 which saw Robyn Lambley retain the seat for the CLP.