For some time in the 1800s the island was called '''Tim Shea's Island''' after a
convict who lived on the island for more than a decade. The current name was given by surveyor
James Warner who named the island after
Alexander Macleay who was the Colonial Secretary of New South Wales from 1825 to 1837. The land on offer bordered Kalara Street to the north, Kate Street to the east and Karrawarra Street to the south. The advertisement offered a free trip by steamer and free luncheon to attendees with terms 1/4 cash balance by promissory note at 3,6,9,12 and 15 months with 8% added. Macleay Island State School opened on 28 January 1986 and still operates today. During the
2006 state election, the
Queensland Government prioritised construction of a single-officer police station on the island as it was needed with the increasing population. In 2007, after a short segment on the Nine television network's nationally broadcast
A Current Affair based on the comments made by real estate watcher John Edwards of Residex said that Macleay Island was a "boom suburb" and worth watching by first home buyers. All the South Moreton Bay Islands received a considerable amount of interest from buyers. A surge in building followed which forced the Redland City Council revise its population estimates. It estimated 2,319 permanent residents on Macleay in 2008. However, with a count of 1,479 dwellings, the peak number of people on the islands during holidays and weekends the total population is thought to have been 3,254. == Demographics ==