During the mid-19th century gold rush at Nerrigundah, sea bird eggs were collected from Montague Island to sell to the miners at the Gulf Mine on Mt.

As the foreign and coastal shipping trade to NSW developed in the mid-1800s, pressure increased for the installation of a navigation aid on Montague Island.

Barnet writes that after a visit to the island to ascertain the best location for the light, plans were prepared and tenders invited in October 1878.

Keepers and their families had to rely on their own resources and this led to the early establishment of the gardens and fowl runs, milking cows, goats and rabbits as well as sea bird eggs.

Trips to the island by locals and tourists for picnicking, fishing and shooting were popular from the earliest European settlement on the adjacent coast until 1953.

Several fishing shacks dating from the 1930s are believed to have existed on the western shore of the Island, however, no evidence remains of these structures.

The asbestos roof was installed, replacing the original heavy duty corrugated iron and later unglazed terra cotta tiles.

Montague remained staffed as it was deemed that the benefits derived from human presence were greater than the cost savings of automating the station.

[2] In 1987, after full automation of the lighthouse, management of the Island was transferred to the NSW National Parks and Wildlife Service though the light tower was retained and operated by the Australian Maritime Safety Authority.

The trial period proved successful and expressions of interest were sought to provide passenger service to the Island.

[2] In 1990 the Island was dedicated as a nature reserve, apart from a small area containing the lighthouse, which remains under control of the Australian Maritime Safety Authority.

By June 1993 a major works maintenance programme was completed involving repairs to the lightstation complex and associated historic facilities.

It was replaced with an array of lightweight solar powered 12 V quartz halogen lamps radiating two beams of 120,000 cd, and a total power consumption of 75 W.[7] The original Fresnel lens was packed prism by prism in individual cases surrounded by expanding foam and sent to Sydney for storage.

The Great Dividing Range forms the mainland backdrop to scenic coastal formations including beaches and rocky headlands.

Large areas of natural value in the Narooma district are conserved in its National Parks and Reserves including the Deua, Wadbilliga, Eurobodalla, Wallaga Lake, Biamanga, and Mimosa Rocks National Parks and Illawong and Broulee Island Nature Reserves.

[2] Montague Island, including the lightstation, is gazetted as a Nature Reserve under the NSW National Parks & Wildlife Service (NPWS) Act in recognition of its importance as a bird sanctuary, penguin rookery and fur seal colony.

Montague Island's marine environment is enriched by its proximity to the continental shelf and the warm Eastern Australian Current enhancing its value as an important nesting area for seabirds.

It has the northernmost colony of the Australian fur seal and is the only haul-out site for this marine mammal along the NSW coast.

[2] The complex includes the lighthouse tower, residences, brick and weatherboard store buildings; and communications mast.

The residences, consisting of Head Keeper's cottage and a duplex for two assistants and their families, were constructed of brick rendered internally and externally.

[2] The Lightstation complex consists of the Light Tower, Head Keeper's cottage, Assistant's duplex and a number of associated store and functional buildings, elements and features.

[2] The Head Keeper's Cottage on the south east of the lighthouse consists of a T plan main building with eight rooms connected by halls.

The main building and service wing enclose a courtyard area with an underground water tank and cement flagged finish.

Cement rendered externally and internally, the duplexes have cast iron fireplaces in the main rooms, together with built in storage units at the sides.

[2] A number of small structures and buildings around the lighthouse precinct generally fulfil their original support and storage functions.

A rendered brick structure (formerly the oilstore, now the generator room) and a weatherboard store stand adjacent to the base of the tower.

Alterations to equipment include when the lantern was changed to solar power in 1986, the original lens and pedestal were removed and are now located at the Museum in Narooma.

A number of other radio aerials on the island provide enhanced reception back towards the NSW South Coast.

The program comprised nine individual projects including roof and gutter repairs, kitchen renovations, aerial mast purchase and installation, floor restoration, track and quarry stabilisation, restoration carpentry, painting of the lightstation and facilities, stabilisation works to the graves, and plumbing and water system upgrades.

[2] Montague Island Lightstation was listed on the New South Wales State Heritage Register on 2 April 1999 with the following statement of significance:[2] Montague Island Lightstation and its setting are highly significant as one of a collection of lighthouses which combine the natural values of a rugged coastal island with the cultural values of a prominent landmark and isolated outpost associated with the development of coastal shipping in the late 19th century.The site was added to the Commonwealth Heritage List on 22 June 2004.