The first town in the Kimberley, Derby was named after Edward Henry Stanley, Lord Derby (1826-1893), Secretary of State for Colonies (1882-1885). The Shire of Derby West Kimberley comprises 102,706 square kilometres and was declared a town site under the Land Act on 27th November, 1883.
The region has a diverse Indigenous Australian heritage and Derby provides numerous health, educational, medical, logistical as well as several other services to remote Indigenous communities. It is one of the first local government authorities in Western Australia to progress towards Indigenous Land Use Agreements with Indigenous people.
Derby was the main base for the Royal Flying Doctor Service in the Kimberley, established in Derby in 1955, but recently in 2018, a new base has been built in Broome.
As at June 30, 2016, Derby – West Kimberley (local Government Areas) has 7730 residents, 64.3% percent is of Aboriginal decent (Australian Bureau of Statistics).