a naturalist, surveyed the area in the 1840s giving his name to the Gilbert's potoroo. Whaling activities were conducted in the bay during the middle of the 19th century. Two Peoples Bay was declared a nature reserve in 1967.

A bush fire broke out on private land near the reserve on 12 October 2012. Following a sudden change in wind direction, a truck carrying two of the fire crew was engulfed in flames; they were badly burned. Over 1000 ha of bushland were burnt, and one of the firefighters