Rainbow Beach was originally known as Back Beach and was home to a large sand mining industry until 1976. The town now takes its name from the towering coloured sand cliffs nearby, which are part of an aboriginal legend. The legend states that an ancient aboriginal God called Yiningie (representing a rainbow) threw himself into the sand cliffs in a fight over a woman, spreading his ‘colourful’ spirits across the cliffs.Rainbow Beach is located approximately 265km north of Brisbane, 76km east of Gympie and 700 metres south of Fraser Island on the Cooloola Coast, Queensland, Australia. Rainbow Beach is a vibrant young town, which has a relaxed atmosphere and is extremely popular with holidaymakers, 4wd enthusiasts and backpackers. This town has a wide range of outstanding natural attractions, such as the coloured sands, the Carlo Sand Blow, Double Island Point and Inskip Point - launching point for Fraser Island. This town has a permanent population of approximately 1000 residents (Gympie Online, 2005).

Rainbow Beach State School was established in 1986 and is located on the most easterly point of the mainland in the Wide Bay South District. The school population is about 100 primary children.