European colonisation of the area began in 1846 with sheep grazing near Cape Spencer. Crops were grown on a small scale in the 19th and early 20th century. Innes National Park was named after William Innes, who discovered commercial quantities of gypsum in the early 1900s and founded the mining town of Inneston in 1913, which had a population of around 500 at its peak. Gypsum was mined until 1930 when the Great Depression made it uneconomical, and in 1970 the town and surrounding land was sold to the South Australian government, creating Innes National Park. Some gypsum mining still continues at nearby Marion Bay.