The town, known as Morisset East until 1948, is named after the Bonnell family, particularly William F. Bonnell, the first settlers of the majority of what is today Bonnells Bay and parts of
Windermere Park and
Morisset Park. The Bonnell family also have a bay which is part of
Lake Macquarie named after them, Bonnells Bay. The Bonnell family owned what is today all of Woods Point, now a national park and parts of the northern grounds of
Morisset Hospital over north to the
Lake Macquarie foreshore of what is now Bonnells Bay. The Bonnell family are not in relation to the early settlers of
Mandalong the James C. Bonnells. The area was subdivided in 1886, but no township was established until after
World War II. The township grew, and a small shopping centre built, after the development of the
Eraring Power Station in the 1980s. A school operated from 1912 onwards. Bonnells Bay has grown considerably since World War II, the school which opened in 1912, Bonnells Bay Public School has grown to capacity, large proportions of the suburb are increasingly being subdivided and the shopping centre now consists of a newly developed 'The Bay Shopping Centre' with a Club,
Coles, Post office and many
convenience stores. ==Population==