The earliest settlement in the area was at Cooranbong in 1826, about west of the current town and near the foot of the Watagan Mountains. Initially, various kinds of agriculture were conducted, and before long forestry became an important industry. Most of the transport to the area at the time was by river boat on Dora Creek meaning that Cooranbong was the most accessible part of town. The town of Morisset itself was essentially non-existent until 1887, when the Sydney-Newcastle railway was built. Morisset sprang up as a sawmill town clustered around the train station, and the township was proclaimed on 3 December.