The suburb was gazetted in 1990 as Madora but was later amended to its current name in 2003.

It wasn't until around two years later that the State Electricity Commission supplied power to Madora Bay.

[4] Over subsequent years, the estate changed in various ways, the biggest possibly being the change of name from Madora Beach to Madora Bay in 1970; this was done through a marketing perspective as the name seemed more appealing to tourists.

A 120-metre (390 ft) wide strip of rural land is zoned in the Peel Region Scheme on the suburb's northern edge, in order to maintain a physical barrier between the Perth Metropolitan Area and Mandurah.

The majority of these people were born in Australia, but are descendants of their English ancestors.