The area of land surrounding Prospect Hill is the traditional land of the
Peramangk tribe. The first European activities in the Prospect Hill area begun with the arrival of William and Jane Michelmore, who settled in proximity to the intersections of Prospect Hill and Meadow Creek. The Prospect Hill area was then formally surveyed in 1840, by
Thomas Burr , and again in 1856. The town experienced a period of significant growth through the 1870s, through the addition of a general store in 1872, alongside a church, and
spring cart service to Adelaide both of which opened in 1873. This period of growth further saw further additions to the town including the Prospect Hill primary school (1887-1962). As well as the introduction of the towns titular name in 1873, the towns expansion facilitated a increase in industry, as exemplified by the establishment of a nearby sawmill, before its destruction by fire in the summer of 1887-1888. == Demographics ==