Daisy Hill lies to the north of the South East Freeway where urban subdivisions nestle into the hills of the Daisy Hill State Forest. The earliest European settlers in the area were the Dennis Family. James and Mary Anne (nee Markwell) Dennis selected 60 acres in 1868 and by 1882, had over 800 acres. The property now known as Daisy Hill, was part of Dennis' Oakey Mountain estate. This was later farmed by James' son-in-law, Alf Shailer. It is thought that the daughters of the Dennis family named the area because of the daisies that grew on the hill.
Other important early settlers were the Usher family who owned the land in the vicinity of Usher Park which was dedicated in 1977. The Ushers first settled in the area in the mid 1880s and called their property Norwich Vineyard. They grew grapes and Thomas Usher produced wine for sale. He also kept bees and grew many varieties of fruit. The Winnett family came to Australia on the same ship as the Ushers and moved to Slacks Creek a few years later. Elizabeth Winnett was teaching at the Slacks Creek School from the late 1890s through till about 1912. George Winnett was secretary at the Kingston Butter Factory from 1920 until the late 1930s. During the 1920s quite a little community had developed in Daisy Hill with Tom Harris' butchery, Fred Mollinhauer's blacksmith shop, William Howcroft the plumber and Watts timber hauling business supported mostly by farmers and fruit growers. By 1925 Syd Floate had taken over the butchery and his wife was the post mistress. Many more timber getters had moved to the district in the late 1920s and early 30s including Charles Ford, Alex Mullins and Alf Harrison. By 1940 Syd Floate was operating a carrying business and Mr Holzheimer had opened up a garage.
The Daisy Hill State Forest was originally gazetted as a timber reserve in 1874 and in 1917 was declared a State Forest. During this time the forest overseer managed the forest so that logging caused minimal damage to surrounding timber. Many ironbarks were felled to provide electric light poles. Other varieties include red ironbark, grey ironbark, white stringybark, tallow-wood, red mahogany, swamp mahogany, spotted gum, brush box, and grey gum. The forest was also used for honey production, gold mining and grazing. The goldmine was started in 1934 with a shaft of 425 feet sunk along the southern boundary of the forest. In 1986 it was declared the first State Forest Park in Queensland.