Long before the European arrived, the Macassan People from the north used to come down in their boats, driven along by the monsoon winds, and bringing with them their culture, religion, (Islam) grog and tobacco. They would stay for the wet season, collecting trepang (sea slug) for the China Trade, and return home when the winds changed to the southeast. It is difficult to define the influence these visits had; in some areas they were welcome; in others they were driven off.

The old people still have stories of the Macassans, as well as Japanese pearlers, and Portuguese slave traders. Dutch explorer Abel Tasman landed at Karslake Island just off the Melville coast in 1644. The British started a military settlement at Fort Dundas, just a short walk from the Lodge, in 1824. This ill conceived scheme was devised to give protection to the trade routes from South East Asia, but the British were ill prepared for such a colony and the Fort was abandoned after constant clashes with the Tiwi warriors.

A Catholic Mission was established in 1911, and has had a major impact on the people, both for better and for worse. The Tiwi people had a significant part to play in Word War 2, when they were the first point of contact by Japanese bombers coming to attack Darwin. Today the Tiwi people are an interesting mix of Traditional and European customs. Well stocked stores and freezers provide the bulk of the diet, alongside the occasional goanna, goose, fish, or wallaby that are still sought after by the hunters.

Art is still has an important place in Tiwi society, and is one of the major elements in keeping the balance of their culture intact. Australian Rules Football has an almost "cult" status on the island, with each community having its own team in the fiercely contested competition. The bare-footed Tiwi's have produced many notable stars in the game in the national league; a tradition that looks set to continue judging by the high standard of play today.