[1] George Elphinstone Dalrymple explored the Halifax Bay area in the early 1860s and the first settlers to the Herbert River Valley settled soon after.

The southern parts of Halifax Bay developed at a slower pace with the area south of Crystal Creek being included in the newly formed Thuringowa Land Division in 1879.

The southern section of Halifax Bay, including Great Palm Island, was prominent in air defence of the area during the Second World War.

After the war the southern section of Halifax Bay began a transition from rural to residential settlement with significant beach developments occurring from the 1960s onwards.

Halifax Bay is generally a turbid environment that supports a wide variety of commercial and recreational fish species, prawns and scallops.