European settlement commenced in the 1820s following the extension of the limits of location in 1829, although the coast from Batemans Bay to Moruya was surveyed the previous year by surveyor Thomas Florance.

[7] The first European settler was Francis Flanagan, a tailor from Ireland, who was granted title to 4 sq mi (1,000 ha) on the north bank of the river at Shannon View in 1829.

In 1830, the next settler, John Hawdon, set up a squat at Bergalia, but being beyond the limits, could not gain title to the land.

It centred about the track opposite where the road from Broulee terminated at the river bank, the two being linked by a punt.

A "bush memorial" has been dedicated to these sailors and 8 other airmen who were killed whilst operating out of Moruya Aerodrome during the war.

Quarrying for granite commenced in the district in the late 1850s by brothers Joseph and John Flett Louttit, who were from the Orkney Islands.

Their quarry on the south side of the river produced stone for many Sydney landmarks, including the columns of the General Post Office in Martin Place, and the base of the Captain Cook statue in Hyde Park.

[16][17] The Moruya Quarry is operated by the New South Wales Department of Infrastructure, Planning, and Natural Resources.

The strip adjoins the beachfront, and flights to Moruya offer a slow and picturesque descent along the coastline.

Moruya has a mild oceanic climate (Cfb) with warm, wet summers and cool, moderately drier winters.

The drier winters are owed to the foehn effect from the Great Dividing Range, which blocks rainfall from the westerly cold fronts that arrive from the Southern Ocean.