The small town of Maggoty Point came into existence in the 1940s with a few shacks being built along the coast, primarily for fishermen. The road into the area was just a track, but the fishing was good.
The name was derived from the fact that seaweed that collected on the beach was a good breeding ground for maggots. More shacks were built and a better road was planned in 1960. It was not until 1961 that the Livingstone brothers, well known graziers in the area, agreed to give a piece of land at Nene Valley Rock to Council. They requested Council to alter the name to Nene Valley and in doing so perpetuate the memory of the small barque that was wrecked in the area.
During the 1980s, the then District Council of Port MacDonnell developed an area west of the town, providing further blocks for sale. Shacks had been freeholded, and other people wanted the chance to purchase a quiet block near the sea. All blocks were sold, and new buildings are appearing throughout the town.
On 27 June 1854, the barque Nene Valley left Gravesend, England for Portland Bay and Port Fairy, Australia, with 31 passengers and a crew of 7. She carried a general cargo. Very little is known of her voyage, except that she struck a long sand bar with a shattering crash, which snapped the long masts like candles. The boats were ordered out and all on board reached the shore safely. Next morning, the chief and second officer with the carpenter and 3 seamen drowned. The crew buried the bodies, then the survivors started to walk to the Glenelg River. Two days later they reached Brown's Station where the ladies and the chief officer remained, while the captain and crew went on to McLauchlin's Station to report the matter to Portland. Somewhere along this shoreline lie the remains of the 4 men, their graves are unnamed and unknown.
In 1997, a public meeting was called to evaluate if the local people wanted to form a community group. With a permanent population of less than 50, it was tremendous to have an attendance of over 50 people. A committee was formed and has allowed the community to be involved in sharing the responsibility of caring for and improving the town. Since its beginning, the group has completed many projects.