The earliest occupation of the area was once thought ot have been by early Polynesian explorersbased on the discovery of a pearl-shell (not native to New Zealand) lure shank found here and originally carbon-dated to the 11th century. Subsequent reassessment of the has archaeological site has resulted in dates in the 14th century
Early European settlement of the area in the late 1800s was based around sawmilling (predominantly Kauri) and gold prospecting.
From the late 1960s Tairua has become a holiday destination, with major activities including game fishing, diving, and surfing.