After European settlement of the Perth region in 1829, the land of much of the area including and surrounding what is now Atwell was granted to G Dunnage. The area was later part of the dairy property owned and operated for many years by Ernest Atwell. Originally it was purchased in the 1920s to spell horses he used in his livery stable business, which was conducted in Fremantle. It was later developed into one of the largest dairies in the Perth region. The huge amount of land was slowly sold off but the Dairy was still operating until the late 1950s. The house and workers cottage were eventually demolished when the area was cleared for redevelopment.