The European settlement of Peel dates back to 1829 when a visionary named Thomas Peel brought three ships of migrants from England for the Peel Settlement Scheme. In 1846 the first lead, silver and zinc mine was opened in West Australia. Although short-lived, it presaged the large-scale mineral sands, gold and bauxite mining and the processing operations that commenced during the 1970s.

The first vines were planted in 1857. However it was not until the 1970s that more significant developments have taken place in what has been a rapidly expanding area for numerous lifestyle activities. The first commercial vineyard was established with a planting of Shiraz by Will Nairn at the Peel Estate in 1974. While most other varieties have also now been established, Shiraz remains the flagship variety for the region.