Before European Settlement extensive native grasslands with paperbark woodland and pockets of rainforest covered the wet tropical flood plains of the Herbert River Delta. Unfortunately almost all of these native grasslands have now been cleared to make way for canefields and development. Although TYTO Wetlands was never cleared, it was a degraded wetland destined to become a canefield or wasteland. Located in a semi industrial area this public land was being invaded by introduced pasture grasses and other weeds from the local refuse tip. In 1996, Hinchinbrook Council engaged renowned local wildlife specialist, John Young to conduct a wildlife study of the TYTO Wetlands area. Results from the study indicated that  had a healthy bird population including nine pairs of Eastern Grass Owls (tyto longimembris) – hence the new name of TYTO Wetlands. The bird audit found 114 different bird species throughout the year.

In August 1997, with the support of the Hinchinbrook Shire Council, State government agencies, local industry, community members and funding from the Natural Heritage Trust and the Hinchinbrook Shire Council, the “TYTO Restoration Project” was launched. It aimed to restore and conserve the natural values of this once degraded wetlands.