Ngāti Hei are the tangata whenua (people of the land) of the Mercury Bay and Hot Water Beach area. Their connection with this coastline stretches back many centuries and is reflected in the traditional name for Mercury Bay, Te Whanganui-a-Hei – The Great Bay of Hei.

The headland above the hot springs was once the site of Te Puia Pā, an important Ngāti Hei settlement. Archaeological discoveries, including middens, stone tools and other artefacts, provide evidence of long-standing occupation, while the surrounding dunes remain wāhi tapu (sacred places) of great cultural significance.

Today, Ngāti Hei continue to care for and celebrate their cultural heritage, ensuring the stories and significance of this special place are shared with future generations.

The Pye family has been part of Hot Water Beach since 1926, when Charles Pye purchased Orchard Farm at the southern end of the beach. Over the following decades, the family transformed regenerating scrub into productive farmland and became closely connected with the local community.

After Charles Pye's death in 1939, his wife Jenny and their son Gordon continued farming the property. Growing up at Hot Water Beach, Gordon developed a deep connection with the land, its people and its stories. He witnessed the area's transformation from a remote farming community into one of New Zealand's most iconic coastal destinations. Alongside farming, Gordon established one of the area's first campgrounds, welcoming generations of visitors to experience the unique character of Hot Water Beach. He became widely respected for his knowledge of local history and his passion for sharing stories about the area's geology, Ngāti Hei heritage, pioneering families and changing landscape.

For nearly ninety years, the Pye family cared for much of the land surrounding the beach and played an important role in preserving both its natural environment and its rich history. Gordon's dedication to recording these stories has ensured they can continue to be shared with future generations.

Camping has been part of the Hot Water Beach experience for generations. Before a formal campground existed, visitors camped freely on the foreshore and in a sheltered area behind the beach known locally as Happy Valley. Families, surfers and holidaymakers returned year after year, creating a close-knit summer community where lifelong friendships and holiday traditions were formed.

As visitor numbers grew during the 1960s and 1970s, Gordon Pye established one of the area's first organised campgrounds, providing facilities while preserving the relaxed atmosphere that visitors loved. The campground later passed to the Wolfe family before relocating further up the valley in 2008.

Although Happy Valley has changed over the years, it remains a treasured memory for many people who spent summers here. Whether digging hot pools, learning to surf, sharing meals with neighbours or gathering around evening campfires, camping has long been an important part of the unique spirit of Hot Water Beach.

During the Second World War, a radar station was established on the hills south of Hot Water Beach as part of New Zealand's coastal defence network. The facility monitored shipping routes along the eastern coastline and helped protect approaches to Auckland and the Bay of Plenty.

Although the radar station no longer exists, remnants of its foundations remain and the site is recognised as an archaeological feature. Radar Road, which leads into the hills behind the beach, takes its name from this wartime installation and serves as a reminder of the area's role in New Zealand's wartime history.