[4] At one point major airlines served the island, mostly with smaller Twin Otter aircraft suited to the short runway.

[5] The islands were named by Captain James Cook in April 1770 after the then First Lord of the Admiralty, Admiral Augustus Keppel.

[6] Prior to European settlement, the island was home to an estimated 60-80 Woppaburra and Ganumi people of the Darumbal nation, with centuries old middens testifying to the quantity of seafood found in the surrounding waters.

Shaddock (1981) describes how the Lands Department held a public auction for six square miles with the successful applicant being Robert Lyons of Rockhampton.

At that point, Michael and Lizzie O'Neill took over the grazing lease and ran sheep, also building a new homestead in the central part of the island.

Prior to this a local oysterman, James Morris was in the habit of bringing fishing parties to this island with accommodation in bush shelters.

Ill health saw Tompson sell the buildings to Con, Cres and Alan Morris who called the resort 'Silver Sands' and ran it until 1966.

Tower only ran the resort for a short time before closing it down in February 2008 announcing its plans for a major redevelopment involving a large hotel, hundreds of apartments and condominiums, a marina, a Greg Norman designed golf course and a larger sized airstrip capable of landing small jet aircraft.

After 12 years of ownership the only major accomplishment by Tower Holdings was the completion of an Environmental Impact Study which lead to the approval by all three levels of government for the redevelopment proposal.

In April 2023, the Queensland State Government announced that they had cancelled the leases previously held by Tower Holdings, opening the way for future development.

[11] The resort is now closed however there is still accommodation on Great Keppel Island which ranges from tents and cabins or even a private beach house on the water's edge.

A number of charters, and full day cruises, sailing adventures, and extended tour options are also available from Keppel Bay Marina.

The proposal was rejected by the Federal Environment Minister Peter Garrett in October 2009 on the grounds that there would be 'unacceptable' impacts to the World Heritage Great Barrier Reef values of the island.

[12][13] Unfazed by the objections and in spite of several other Great Barrier Reef Island resorts closing[14] Tower Holdings submitted a third proposal early in 2010.