Mt Eliza was named after the wife of Melbourne founder John Batman, Elizabeth Callaghan, in 1836. Originally established as a holiday destination, this changed in the early 1900’s when many of the old, large estates were subdivided.

The Ranelagh Estate was one such subdivision and was designed by Walter Burley Griffin and his wife Marion Mahony Griffin in 1924. Part of the Village Shopping Centre lies within the Ranelagh Estate, which comprises 795 blocks and retains 11 of its original 13 reserves, including the large coastal foreshore reserve that houses the exclusive Ranelagh Club.

Daveys Bay was named after James Davey who constructed a jetty in the 1840’s to ship his produce to Melbourne.  In 1909 the Daveys Bay Yacht Club was established, and winds its way to a walking track overlooking Mt Eliza Beach on the shores of Canadian Bay, which was named after three Canadians who owned a sawmill in the area in the 1950’s.

In 1928, the exclusive girls school Toorak College was built and is one of the oldest independent girls schools in Victoria.

By the 1950’s the shopping precinct began to develop and by the 1960’s was a well established shopping village.

Hollywood glamour came to Mt Eliza in 1959 when movie stars Fred Estaire, Gregory Peck and Ava Gardner arrived to shoot the Stanley Kramer film, On The Beach.