The community was established by King Kamehameha I to be his seat of government when he was chief of Kona before he consolidated rule of the archipelago, and it later it became the capital of the newly unified Kingdom of Hawaiʻi. The capital later moved to Lāhainā, and then to Honolulu. Royal fishponds at Kaloko-Honokōhau National Historical Park were the hub of unified Hawaiian culture. The town later functioned as a retreat of the Hawaiian royal family. Up until the late 1900s, Kailua-Kona was primarily a small fishing village.In the late 20th and early 21st centuries the region has undergone a real estate and construction boom fueled by tourism and investment.

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