The township of Stroud can trace its beginning back to the late 1820s when it became the headquarters for a public funded company known as the Australian Agricultural Company (A. A. Company). In 1824, this company received a grant of 400,000ha of land (almost a million acres) in the Upper Hunter Region between Port Stephens and the Manning River. This land was to be used for agriculture and the production of fine wool.

Many fine buildings were constructed on the northern shores of Port Stephens and at Stroud. Some of these are still in use today: Stroud House (1827-32); St John's Church (1833) and Quambi School House (late 1830s). Also worthy of mention are the underground grain silos, built by the A. A. Company for the storage of grain. Many other lovely old buildings can be seen throughout the district.

Many of the convict-built buildings from this era are still standing and can be seen by taking a guided tour with the Historic Society.