Risdon Cove was originally intended to be the settlement site for the capital city of Tasmania. It was the first site of European settlement in the State, established by Lieut. John Bowen in 1803, and consisted of 49 people including 24 convicts.

Meanwhile, Lieut-Col David Collins, having failed to establish a settlement in Victoria, decided to found a settlement on the western side of the Derwent River, at Sullivan's Cove in 1804 (present day Hobart city). For three months neither colony interfered with the other until Governor King ordered Collins to take over the Risdon Cove site as well, and so Hobart developed around both sites.

The National Parks and Wildlife Service have designated Risdon Cove an historic site and visitors to the area can view the audio visual display at the visitors' centre. A memorial to the first settlers is located at Bowen Park, East Risdon.

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