 Historically, Waterfall Gully was first explored by European settlers in the early-to-mid-19th century, and quickly became a popular location for tourists and picnickers.The government chose to retain control over portions of Waterfall Gully until 1884, when they agreed to place the land under the auspices of the City of Burnside.28 years later the government took back the management of the southern part of Waterfall Gully, designating it as South Australia's first National Pleasure Resort.