[2] Like most in the Whitsunday group, Hamilton Island was formed as sea levels rose which created numerous drowned mountains that are situated close to the east coast of Queensland.

Hamilton Island is believed to be named after a crew member of the survey vessels that charted the area in 1866-8.

In 1978, Keith Williams commenced construction of Hamilton Island Harbour and the resort complex shortly after.

In 1992 the resort was placed in receivership and between 1995 and 2003 it was owned by BT Australia and managed by Holiday Inn for a portion of that time.

The island was purchased by the Oatley family in 2003, operators of a winemaking business, and was listed for sale in 2023.

[15][16][17][18] In September 2016, it was reported by news media outlets that the Queensland Department of Environment and Heritage Protection (EHP) had issued Damage Mitigation Permits (DMP) which resulted in over 1,000 animals being culled on Hamilton Island between November 2014 and May 2016 by the resort's operator.

Over 18 months, the cull resulted in the death of 599 common brushtail possums, 393 agile wallabies, 36 pied currawongs, 35 sulphur crested cockatoos, three torresian crows and a laughing kookaburra.

The EHP stated the role of the permits were to allow the "ongoing management of some wildlife species to prevent unacceptable levels of damage, and to protect public safety at the airport and in the resort itself".

[21] The resort's management carried out the culls “to prevent damage or loss of property and to protect the health and wellbeing of staff, guests and other visitors”.

A Reverse osmosis seawater desalination plant was commissioned in 1996 and can supply up to 1.3 million litres of potable water per day.

The plant's seawater intake is driven by two vertical turbine pumps installed on a purpose made jetty.