Airlie Beach, a coastal resort town near the Whitsunday Islands, is 20 km north-east of Proserpine and 110 km north of Mackay.

An early European settler in the area, Thomas Abell, took up land in 1904 for growing vegetables and tropical fruit. His family also had timber leases on some of the offshore islands. In 1935 the Lands Department offered some land fronting the water for selection and asked the Proserpine Council for a name. The council's chair suggested 'Airlie', perhaps commemorating his Scottish childhood near the Parish of Airlie. The suggestion held, and soon after land sales in 1936 the locality became known as Airlie Beach. The nearest neighbouring settlement was Cannonvale, about two kilometres west.

When a post office was opened in 1959 it was recorded that Airlie Beach had 83 residences, 59 permanently occupied. Most families were engaged in farming. The Bruce Highway from Brisbane to Cairns was in the course of construction and Proserpine business interests turned their attention to prospects for Whitsunday tourism. There was already a campaign afoot to create a harbour for Proserpine sugar, and the loss of the Cannonvale jetty to cyclone damage brought the sugar and nascent tourism industries together in a push for appropriate facilities. The result of this joint effort was Shute Harbour, opened in 1961. Ten kilometres east of Airlie Beach, Shute Harbour was devoted exclusively to tourism after sugar was transferred to bulk handling facilities at Mackay.

Airlie Beach began to develop as a resort, sharing in the growing Whitsunday tourist industry, and becoming a destination in itself. The Airlie Beach Hotel Motel opened in 1968. An airport between Airlie Beach and Shute Harbour was opened for Reef Airflights, and the whole area from Cannonvale to Shute Harbour was aggregated into the town of Whitsunday (1987).

Airlie Beach has a marina, a sailing club, numerous restaurants, shops and is Whitsunday's entertainment centre. The town offers a range of budget accommodation options, including caravan parks in Cannonvale and Jubilee Pocket, backpacker hostels and holiday flats. Resort hotel complexes are more recent additions, with waterfront views out to the islands. Airlie Beach lagoon, with three stinger-free swimming pools, was opened in 2001. Between Airlie Beach and Shute Harbour there is the Conway National Park (22,500 ha, 1982) part of a densely forested range that ends with Cape Conway, which was named by Lieutenant James Cook in 1770.

Airlie Beach's census populations have been:

Census Date Population
1966 235
1976 971
1991 2524
2001 Residents 3029
Visitors 1157
2006 2751*
2011 909

* Includes Jubilee Pocket, Mandalay and Flametree

Further Reading: 

Todd Barr, No swank here? The development of the Whitsundays as a tourist destination to the early 1970s, Townsville, Department of History and Politics and Department of Tourism, James Cook University, 1990

Ray Blackwood, The Whitsunday Islands: an historical dictionary, Rockhampton, Central Queensland University Press, 1997

Cannonvale entry