Within Moreton Bay lie many small islands, protected by the large barrier islands of Moreton and North and South Stradbroke. Some of these small islands are inhabited, with thriving communities, while others only appear at low tide, being little more than mangroves and mud. Even so, these mud islands are vitally important for the continued health of the waters and wildlife of Moreton Bay. The village islands of Russell, Karragarra, Lamb and Macleay are known collectively as the Southern Moreton Bay Islands.

In 1842, when the Moreton Bay Penal Colony was closed, Brisbane and its surrounds were opened up to free settlement. Primary industries such as timber cutting, fishing and oyster farming flourished and were integral to the economic development of Southeast Queensland. Until the early 1970s, fruit and vegetable production and fishing supported the small Island communities. In the early years, the Islands' isolation and complete lack of facilities fostered a strong community spirit of self-reliance, volunteering and care for others. Controversial subdivisions began in the late 1960s, and, in 1973, the Redland Shire Council (now Redland City Council) was granted control of the Bay Islands by the State Government.

The Campbell Family was one of the first to settle the Bay Islands, bringing agriculture and industry to the area. The Campbell Family of Moreton Bay documents the family's history and is the third volume in the series, Histories of the Bay Islands, Moreton Bay.