Daveys Bay was named after James Davey who constructed a jetty in the 1840s to ship his produce to Melbourne. In 1909 the Daveys Bay Yacht Club was established, and winds its way to a walking track overlooking Mt Eliza Beach on the shores of Canadian Bay, which was named after three Canadians who owned a sawmill in the area in the 1950s. In 1928, the independent girls school Toorak College was built and is one of the oldest independent girls schools in Victoria. By the 1950s the shopping precinct began to develop and by the 1960s was a well established shopping village. Hollywood glamour came to Mt Eliza in 1959 when movie stars Fred Astaire, Gregory Peck and Ava Gardner arrived to shoot the Stanley Kramer film, On The Beach, based on the novel of the same name by British novelist Nevil Shute who had lived at nearby Langwarrin.