Named after the species of Euphorbiaceae bushes which grow on the dunes and give off a milky latexlike substance, it is commonly referred to simply as Melkbos.

The first, Koeberg nuclear power station, constructed with the help of the British and French some 6 km north of Melkbosstrand, necessitated the creation of high quality housing for the foreign contractors.

The second, the government subsidised creation of Atlantis Diesel Engines (ADE), a joint venture between the British Perkins-Elmer and German Daimler AG brands, to bypass international sanctions imposed by United Nations Security Council Resolution 418.

Although ADE was in the industrial park of Atlantis, some 50 km north of Cape Town, subsidised housing was established in Melkbosstrand to help attract and retain the many German, British, and even South African, engineers, managers, and technicians.

Melkbos features in Deon Meyer's best-selling crime novel 7 Days (7 Dae in Afrikaans original) (2012) as the place where mad sniper, cop-killer, Solomon buys spray paint for camouflage.

[citation needed] This labelling remark is probably because Melkbosstrand is home to a host of South African celebrities (retired rugby players, actors, writers, visiting members of the House of Lords), which is mainly due to its location and its views of Table Mountain.