In 1859,
Maihi Paraone Kawiti petitioned Governor
Thomas Gore Browne for European settlers to establish a town in the area. Browne was pleased at Kawiti's offer but preferred for
Kerikeri to be developed instead. Two years later, coal was discovered and after tests found it to be of the highest quality the government purchased from local Māori. The town of Kawakawa was built around the coal mines A horse-drawn tramway was opened in 1868 to carry coal from the mines to the
Taumarere wharf. In 1871 two steam locomotives were acquired and the tramway was upgraded to railway standard. In 1884 a
railway line from Kawakawa to Opua was opened, and this replaced the line to Taumarere wharf. The area was a location for the late 19th/early 20th century
kauri gum digging trade. By 1899 there were over 300 residents in the town, which was built mainly on the hillside near the coalmine. In March 1899 a fire destroyed many of the buildings. The town was rebuilt on the flat, alongside the railway tracks. The present
railway station was opened in 1911 on the line to Moerewa, at the junction with the mine branch. A railway line south to
Whangārei was completed in 1911. Coal mining ceased at Kawakawa in the early 20th century due to the mines flooding. Since the closure the main economic activities are farming and tourism. The
Bay of Islands County headquarters were in Kawakawa until the county was disestablished in 1989. ==Demographics==