Happy Valley is located approximately halfway up the east coast facing the Pacific Ocean.

[4][5] On 7 December 2020 a bushfire, started in October by an illegal campfire, threatened the town and caused residents to evacuate their homes as it burned out of control.

[7] Heavy rainfall in mid-December helped contain the fire and the QFES handed control back to the Queensland Parks and Wildlife Service (QPWS).

[8] Up to 14 December 2020 the fire had been burning for over two months and more than half the island had been "blackened".

Though the fire was still burning the island was declared safe for visitors and reopened on 15 December.