Northcliffe is the only town in Western Australia that was established for the sole purpose of Group Settlement, it was even named after the newspaper baron whose papers promoted the scheme. Groups were sent to the area in 1924, however they were doomed to fail due to poor soils and the difficulties associated with clearing karri forest.
The Government did provide amenities and infrastructure and at the peak of the group settlement scheme there were 14 one room schools in the Northcliffe district alone. Despite these small efforts as one of the most isolated group settlements Northcliffe was known as one of the most miserable.
The majority of blocks were abandoned by the mid 1930's but those that stayed gradually amalgamated their holdings and diversified their farming. A small timber mill was constructed in the late 1930's and tobacco crops were tried. As new technology was developed the timber industry began to grow and the town has survived its difficult beginnings.