The town is named for Major James Thomas Morisset, who camped there in 1823 while making the first overland journey from Sydney to Newcastle. Historically there has been considerable confusion over the spelling of the suburb: Morissett, Morriset, Morrissett and Morrisset have been used. According to the Newcastle Morning Herald:

Over the years there has been a great deal of argument about how the name of Morisset should be spelt and it is generally assumed that the early authorities had blundered. The blame lies at the door of the man after whom the township is called, an early Commandant of the convict settlement of Newcastle. He was fond of thinking up new ways of spelling his name.

The earliest settlement in the area was at Cooranbong in 1826, about 5 kilometres west of the current town and near the foot of the Watagan Mountains. Initially various kinds of agriculture were conducted, and before long forestry became an important industry. Most of the transport to the area at the time was by river boat on Dora Creek meaning that Cooranbong was the most accessible part of town. The town of Morisset itself was essentially non-existent until 1887, when the Sydney-Newcastle railway was built. Morisset sprang up as a sawmill town clustered around the train station, and the township was proclaimed on 3 December.

In 1908, a psychiatric hospital opened on a large estate along the lake shore. At its height in the 1960s, Morisset Mental Hospital had 1,600 patients. The Hospital continues to dominate Morisset's reputation, although it now holds less than 200 patients, and is threatened with closure.

In more recent times, the Morisset Peninsula to the east of the town has become the main residential area. It has experienced a high rate of growth since the construction of Eraring Power Station in 1986. Most of Bonnells Bay is now what long-time residents quaintly refer to as "high-density housing", although by city standards it is decidedly low-density. Several retirement villages have been built, most of them only in the last decade. Subdivision of larger blocks has come close to saturation in many suburbs, with only a few hobby-farms still remaining, and precious little natural bushland left.

In recent times the formation of Morisset Mega Markets has brought about some support for the local economy.

[edit] Further reading

Iron Horse and Iron Bark: A history of Morisset and district, Beryl Mullard, ISBN 0-9579322-0-0
A Private World on a Nameless Bay - a history of Morisset Hospital, Morisset Hospital Historical Society, ISBN 0-646-39273-5