In 1985, the Victorian government decided that, to protect the penguin rookery, further development of the subdivision would be prohibited and all the properties would be progressively purchased by the state.

In the early 20th century, the Summerland Peninsula had remained relatively untouched by European settlement compared to the rest of the island.

The 1989 Phillip Island Penguin Reserve Management Plan called the estate "a major blight on the landscape".

[7] The buyback process was finalised in 2007, with the compulsorily acquisition of the final 42 properties (20 empty blocks and 22 with houses, held by 34 private owners) to take place over the next three years, at a cost of $15 million.

[9] In June 2010, the government announced that the buy-back programme had been completed, and the land involved was in the process of being added to the Phillip Island Nature Park and revegetated.