This study addresses the question: how did social and political divisions influence the economic and environmental development of Kempsey during the colonial period up to 1865? Primary documents including personal letters, journals, memoirs, political and governmental papers, along with a range of colonial newspapers have been studied and interpreted to form a social historical solution to the question. Due to the range of sources available for this investigation, a variation of methodologies has been employed, with particular emphasis on an empirical qualitative analysis. In addition to considering existing non-scholarly thematic histories of the Macleay Valley, this thesis draws existing scholarly investigations together and builds upon them, looking into the interdependence between society and environment, politics and geographical developments, culture and social movements to piece together the story of Kempsey and uncover the key events which have led to long lasting impacts on the town. No other scholarly study of this kind has been undertaken to bring the entire complex and multifaceted story of Kempsey’s early years into one scholarly investigation. Implications for this study highlight the important factor that powerful social and political divisions in a community have when important decisions about town planning, environmental protection, and issues of social justice need to be addressed. These divisions can lead to catastrophic outcomes that could impact generations to follow, as shown in the tumultuous history of Kempsey, New South Wales.