Purchased in the early 1900s by the Salvation Army it was used as an alcohol treatment centre for men for two years, and later women when a larger facility was constructed on Rotoroa Island.

[3] Regarded as sensitive coastal property, purchase by a foreign owner would require approval by the Minister of Finance and Minister of Lands under New Zealand's Overseas Investment Act of 2005.

Development on the island includes a tourist resort, a landing strip and a nine-hole golf course.

Actor Russell Crowe once worked at the resort in his youth.

[7] Two years later, a larger facility was made on Rotoroa Island for men, and Pakatoa was used for female inebrates.