Māori camped on the bank and fished there. They used boulders from the bank - some up to 50 kg - to hammer the rough forms of stone tools from quarries in the nearby hills.
The shelter offered by Boulder Bank was a major factor in choosing the site of Nelson. In 1848 a beacon was erected near the end of the bank and, in 1862, the cast iron lighthouse building that remains today. In 1906 a cut was made in the bank to allow easier passage to Nelson Harbour for shipping. 'The Cut' now separates Haulashore Island from the bank.