Hualalai was founded in 1985 as a K–5 satellite of Hawaii Preparatory Academy in Waimea, by parents who wanted local education for their children, and business owners who needed to draw young professionals to the area.

With a 9:1 student/teacher ratio, Hualalai students were encouraged to participate in state and national programs and have won recognition and numerous awards for academic achievement, athletic performance and artistic pursuits.

Many contributing factors were attributed to their collapse, the main being the dwindling student body.

Initially Kamehameha Schools were interested in the property and had reportedly put in a bid that was under consideration.

Makua Lani Christian Academy bought the 14-acre property in June 2014 and was able to move from their previous Holualoa campus in time for the 2014–15 academic school year.