Establishment of the seaside town of Emu Park resulted from the desire of Rockhampton townspeople to have a “watering place” to which they could escape from the summer heat and humidity. In September 1867 business professional people petitioned the Queensland Government to have a portion of land on the seacoast, bounding Ross, Beddome and Palmer's Cawarral Run, set aside as a Town Reserve. Despite considerable opposition and impediment from the owners of Cawarral Run a Village Reserve and Seaside Watering Place of 2560 acres was gazetted In January 1869, within twelve months of the Proclamation the town had been surveyed and the first sale of Crown land was held at Rockhampton in May 1870. Thirty-four allotments were sold, mostly to Rockhampton businessmen, further land sales were held and by the late 1880's nearly all land with a sea-view had been sold.

Officially named Hewittville for Robert Hewitt, the name was retained on official documents and maps until the name of the town, but not the parish, was changed to Emu Park in 1890, from the beginning, however, the township was generally called Emu Park in newspapers and by all who went there.  There was very little local timber around the settlement for building and most of the material used was brought in by coastal vessels and floated ashore (except for bricks which were made on site). Despite the distance from Rockhampton, over very rudimentary tracks, Emu Park became popular as a holiday watering place and as early as 1872 Emu Park's first commercial premises, the Blue Bell Hotel, was built.

By the 1880's the old Blue Bell Hotel had been replaced by the Grand and the Emu Park Hotel in Emu Street was being run by Fred Comley who extended the hotel and erected bathing houses on the beach for the use of his guests, he also added a large hall to the hotel and this became a centre of entertainment not only for hotel guests but also for town residents. The opening of the railway line in 1888 opened a period of great development in both private and commercial building and within twenty years of its proclamation the little town had seven boarding houses and five hotels to cater for visitors.