Neiafu is the administrative centre of the Vavaʻu group and has government offices, banks, schools, a police station and a hospital.

It is also an important centre for tourism with many yachts anchoring in the Port of Refuge.

In the late 19th century Neiafu was the location of a German coaling-station, established under the country's 1876 Treaty of Friendship with Tonga.

[2] The base was transferred to Britain in 1900 with the establishment of a British protectorate.

[3] The town is powered by a 300kW solar PV farm with battery backup in the hamlet of Kāmeli.