The Kaurna name for the area around the mouth of the Yattagolinga River was Yarta-kurlangga. The name probably means 'place of the separate or last land', possibly referring to Rapid Bay's remote position away from the frequently used travel routes [C.Schultz, 'Feet on the Fleurieu'].

Colonel Light landed at Rapid Bay on 8 September 1836. Light named the bay after his ship, the 'Rapid'. Rapid Bay continued as an important base for Light for some months, and half of his survey team were stationed there from 2 November to 22 January.

The area around Rapid Bay was surveyed in 1839. The first sections were taken up by the South Australian Company. Minerals were found in the area very early on, and mines were established. Later, in 1937 BHP decided to commence mining limestone at Rapid Bay. As well as setting up the mining equipment, a township had to be established and a jetty built. BHP continued operations at Rapid Bay until 1981, after which the site was taken over by the Adelaide Brighton Cement Company.