The lighthouse was originally erected at the entrance of the Port River and first lit on New Year’s Day 1869. Of British design, the structure was transported to the colony in parts and when built included accommodation in the lower rooms but they proved unbearable in the local heat.

In 1901 the iron body of the lighthouse was moved to South Neptune Island in Spencer Gulf, and fitted with a new lantern. The original lantern was installed in a lighthouse at Wonga Shoal, eight miles from Port Adelaide.

Lightkeepers and their families lived in a cottage on the island, with stores and mail arriving monthly from Adelaide. The lighthouse used a grandfather clock principle to rotate the mechanism, requiring rewinding every 90 minutes. The illuminant was vaporized kerosene, in use until 1976 when it was converted to electricity.

In 1985 the lighthouse was decommissioned and acquired by the South Australian Maritime Museum. It was restored and reassembled on its present site on Black Diamond Square and opened to the public on 13 March 1986 to celebrate South Australia’s Jubilee 150 year.