The island is named after William Odell Raymond,[3] originally a magistrate from New South Wales, who established himself as a squatter in Gippsland in the 1840s.

Before the inauguration of the current chain ferry in 1997, the topic was the subject of an academic paper in the Rural Society Journal, which examined "the controversy over the proposal to link Raymond Island, Victoria to the mainland through construction of a bridge, to replace the current ferry service".

The Raymond Island Community Association (RICA) hosts regular meetings for residents and ratepayers, and has roots that go back to 1949.

With the help of volunteers, a two-rink green was created on a vacant block of land owned by Gordon and Beryl Winch, at 7-15 Eighth Avenue, just down from First Parade.

[15] More long-lived was the Raymond Island primary school (number 3384), which opened to students on 14 February 1902.

In 1897, Fred Barton (snr) held the first Presbyterian church service on Raymond Island, in a private home.