The first land grant in the area was to John Farrell in 1827. In 1833 a land grant was made to Australia's first Catholic priest, John Joseph Therry, by Governor Bourke. A further grant of 280 acres made in 1837 meant that Therry's holdings covered most of the peninsula from Newport to Whale Beach. He built a church in this area but his plans for a settlement never eventuated. Therry fought hard for the recognition of the Catholic Church in the colony. After he died, the land was left to the Jesuit order and was then sold to help finance the rebuilding of St. Mary's Cathedral in Sydney. In the 1920s, the area was still known as 'Priest's Flat'. Arthur J Small handled a subdivision in 1921 and chose the name Avalon. Lots were sold for £100 each and included two year's free membership in the local golf club.