Nearby to the north is the historic settlement of Waitangi, and the residential and commercial area of Haruru Falls is to the west.

The port and township of Opua, and the small settlement of Te Haumi, lie to the south.

A popular attribution, most likely apocryphal, is that when Reverend Henry Williams first arrived in the Bay of Islands searching for a location for his mission station, he told his Māori guide, "Pai here," meaning "Good here," as his Māori vocabulary was limited.

[8][9] Henry Williams[7] and his wife Marianne[6] settled in Paihia in 1823 and built the first church there the same year.

[11][12][13] In December 1832 the first mention of cricket being played in New Zealand was recorded by Henry Williams.

[14] In 1835 a game of cricket was witnessed here by Charles Darwin,[15][16] in December 1835 while the Beagle spent 10 days in the Bay of Islands.

It was built to commemorate the Anglican missionary Henry Williams who established a mission at Paihia and converted many local Maori.

[26][27] In October 2020, the Government committed $66,234 from the Provincial Growth Fund to replacing all roofs at the marae.

It has strong subtropical influence and is classified as such under the Trewartha system due to its consistent warm temperatures, and is the mildest weather station in New Zealand.