The island is the subject of at least two Aboriginal legends. One involved two women making a home on the island, where there were midyim berry bushes. When only one of the women could be seen on the island, it became known as Old Woman Island. The same legend concerned the midyim berry bush - hence 'midyam' becoming altered to 'Mudjimba'. A second legend interpreted the island as being the head knocked off the top of a warrior, Coolum, which is represented as the flat-topped Mount Coolum about six km northwards.
Mudjimba was part of the coastal strip development northwards to Noosaville following the construction of the David Low Way coastal road in the early 1960s. It has an unbroken beach southwards to the mouth of the Maroochy River along with a surf life-saving club, a caravan park and a foreshore reserve. Twin Waters golf course separates the township from the neighbouring suburb of Pacific Paradise. Twin Waters was financed by the failed financial institution Tricontinental, and remained in its portfolio until sold to Lend Lease in 2003.
In 2005 the suburb of Twin Waters was created, reducing Mudjimba's area by about half, leaving it with the part of Maroochy River Conservation Park north of Ocean Drive. The Mudjimba caravan park is inset in the north-east corner of the conservation park.
The failure of the Twin Waters/Tricontinental venture, however, appeared to be beneficent, as median house prices grew by 85% in Mudjimba during 1996-2001. Pacific Paradise's prices grew by just 18%. The Sunshine Coast airport is immediately north in Marcoola.
Information sourced directly from the Queensland University website, Queensland Places
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