The shire was formed in 1978 when the Queensland Government decided to take control of the islands over from the Uniting Church of Australia.

The local community objected, and asked the Australian federal government to help overturn this decision.

[5] The area has abundant flora and fauna, including tea trees, mangroves and sea oaks.

The beaches are filled with a variety of marine life, including turtles and the endangered dugong.

[8] In the 2001 census, the Shire of Mornington had a population of 934 people, of whom 88.2% were Indigenous (Aboriginal Australian or Torres Strait Islander).