The settlement emerged from a popular holiday destination that was to be developed into a campsite and caravan park from 1957 . The government then decided to establish a permanent settlement, for which plots were offered for purchase from 1961 to 1963. Secretary Stewart Bovell decided to name the new settlement after Grace Bussell , who had become a regional heroine after a shipping disaster on the area's coast in 1876, rescuing more than 50 castaways.
Gracetown Tragedy
On 27 September 1996 in as "occurred Gracetown Tragedy become known" incident when during surf school event a storm began and visitors under an overhang consisting of limestone existing cliff sought shelter. When the overhang suddenly fell off, 9 people died, including 4 children. The event and how the small community dealt with the loss, as well as the search for someone responsible, are portrayed in the television documentary Surviving the Fall: The Gracetown Tragedy .
