Originally a small crayfishing settlement, it was developed by entrepreneur Alan Bond in the 1970s and 80s for the 1987 America's Cup.

Yanchep is bounded to the north-west by Two Rocks and to the south by the rural localities of Eglinton, Carabooda and Pinjar.

For a suburb it is extremely large, covering over 220 square kilometres (85 sq mi) and taking up almost the entire northern and north-eastern portion of the City of Wanneroo.

For thousands of years prior to the arrival of Europeans, the Yanchep area was inhabited by the Indigenous Australian Noongar people, and was a noted hunting site.

The name Yanchep was adapted from the Noongar word "Yandjip", or "Yanget", which is their name for the bulrush reed that is common in the wetlands of the area (compare Yangebup in the city's south).

[5] In the Western Australian State Government's "Directions 2031" urban expansion plan, Yanchep was once again highlighted as a future satellite city and major metropolitan centre.

On 11 December 2019, a fire that started in Yanchep burnt over several days through about 14,000 ha across Two Rocks and into the Shire of Gingin.

[8] The Australian Bureau of Statistics has identified Yanchep and Two Rocks as a significant urban area experiencing rapid growth.

Like many other northern suburbs of Perth, a significant British-born minority is present, with 17.5% listing England as their country of birth at the 2021 census.

Yanchep National Park includes guided tours of Crystal Cave, bush walks, koala displays, and the Loch McNess lake.

During the 1980s the area was home to popular tourist attractions including Atlantis Marine Park (in Two Rocks) and the Sun City Marina.

In the 2017 WA state budget, $441 million was allocated to build the extension, with construction having started in late 2019.