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Aboriginal people have occupied this area for more than 40,000 years. A settlement was established on the island in 1923 by the Methodist Overseas Mission. The Mission attracted aboriginal people from eastern clan groups to the island. These included Gupapuyŋu and Djambarrpuyŋu, as well as Wangurri and Warramirri speaking people. The traditional owners of Milingimbi and the surrounding seas and islands are Yan-nhangu speaking Yolngu Matha people. The island was bombed by the Japanese during World War II and most of its population moved to nearby Elcho Island. After the war, the Island was used as Royal Australian Air Force base, before the missionaries returned in 1951. The Mission continued to administer the island until 1974 when administration was transferred to Milingimbi Community Incorporated. In 2008 Milingimbi became part of the East Arnhem Shire Council and the shire took over local government.