The history of modern Port Lincoln began in February 1802, when the British navigator Matthew Flinders entered the vast harbour aboard the ship "Investigator". He named the place in honour of his native city, Lincoln, in the English county of Lincolnshire. Official settlement of the region began significantly later, in 1839, when the first ships carrying European colonists arrived.
The city's development was defined by a unique combination of geographical advantages and natural limitations:
- An Ideal Harbour: The city is situated on the shores of Boston Bay, which is considered one of the largest natural harbours in the world (its area exceeds that of Sydney Harbour by three times). This predetermined the settlement's destiny as a vital maritime port.
- The Capital City Dispute: Due to its convenient location, Port Lincoln was seriously considered as a candidate for the capital of the new colony of South Australia. However, Colonel William Light, responsible for selecting the site, gave preference to Adelaide due to the lack of reliable fresh water sources in the vicinity of Lincoln.
In the first decades of its existence, the regional economy relied on livestock farming and agriculture. Settlers developed the lands of the Eyre Peninsula, engaging in sheep breeding and grain cultivation. The sea has always played a key role in the lives of the townspeople: a fishing industry emerged here at an early stage, which subsequently transformed Port Lincoln into the "Seafood Capital" of Australia.