The beginning of European settlement in Australia in 1788 occurred within a short distance of the site. In 1790, under the directions of Governor Arthur Phillip, a hut was built for Bennelong, a prominent Aboriginal figure in and around the European settlement.
Bennelong solicited the government to ‘build him a hut at the extremity of the eastern point of the cove'. This, the governor, who was very desirous of preserving the friendly intercourse which seemed to have taken place, readily promised, and gave the necessary directions for its being built. 'The hut, built of brick, twelve feet square, and roofed with tiles, was completed in November 1790.'