The township of Stenhouse Bay was named after Andrew Stenhouse, who in the 1920’s had a business called the Permascite Manufacturing Company. He helped start the gypsum industry in this location.
The Waratah Gypsum Company had works here for the quarrying and exporting of rock gypsum. Gypsum after being washed, roasted and ground, was used in the manufacturing of plaster of paris and cement. The quality of the gypsum in this area was exceptionally high class and most of Australia’s needs were supplied from here.
The Waratah Gypsum Company closed its works and the town was sold to the South Australian Government which demolished the town except for the few houses required for the rangers of the National Parks and Wildlife Organization who look after Innes National Park.