The Healthy Cities movement was started in 1985 by the World Health Organisation (WHO) in response to a need to approach public health in a more holistic and integrated way. The Healthy Cities model (diagram below) recognises the interactions between the social, economic and physical environments.

Since 1985 over 3000 healthy cities, towns, villages and islands have been established throughout the world. These Healthy Places take various forms from the over 700 European cities and towns which are a part of the structured WHO accreditation program through to local governments which apply Healthy Cities planning processes and finally to non-government organisations such as Healthy Cities Illawarra.

Healthy Cities Illawarra was established as a pilot program in 1987, initially funded by the Federal government along with Noarlunga (South Australia) and Canberra (ACT). In 1988, funding was provided by the NSW Health Department to appoint a full time manager, secretarial support and provide some operating budget. This funding was an enhancement to the Illawarra Area Health Service budget and was administered by them through the area Health Promotion budget. In 1998, Healthy Cities moved onto a three yearly funding cycle, however this is reviewed on an annual basis.

In 1990, the NSW Minister for Health attended the first national Healthy Cities conference and committed further funding to Healthy Cities through the non-government organisation funding program. Healthy Cities Illawarra became an incorporated body in 1990 managed by an intersectoral management group comprising three local government authorities, Illawarra Area Health Service, University of Wollongong, Department of Education, Catholic Education Office, and community representatives.

In 1997 the Council of Reference was disbanded and replaced with a membership base of individuals and organisations. Today Healthy Cities Illawarra is a non-government, community-based organisation operating from offices in Wollongong and Nowra.