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The Nyoongar people were the original custodians of the land. The arrival of British settlers in 1829 on the Swan Coastal Plain eventually led to Nyoongar dispossession in the Hills behind Perth. The Parkerville Suburban Area was made open for selection in June 1895.

Parkerville was one of the first stations to be constructed on the railway line that once ran between Bellevue and Mount Helena, opening for traffic in 1896. The town was named in honour of Stephen Henry Parker whose country home, now the Old Mahogany Inn, was situated nearby. Parker was a prominent member of Perth's legal fraternity.