Incorporated as a town in 1956, Woody Point is an enclave community of Gros Morne National Park. It is located on the south side of Bonne Bay in the heart of the park.

About the year 1800, Bird and Company established a trading post for fur and salmon in Woody Point. The first settler was likely John Roberts about 1849. In the 1860s and 1870s, more settlers began to move to the area. Many of those were families who were engaged in the Labrador fishery, as well as drawn to the rich herring fishery.

The population increased to 254 in 1884 and by 1901 there were 450 residents. Lobster became an important fish species to Woody Point after a slump in the herring fishery in the 1860s. From the late 1890s, seasonal work in the forest, harvesting timber, became very important to the local economy. In addition, because of its deep-water port, Woody Point was also able to become an important shipping port. The combined economic benefits of fishing, logging and shipping enabled Woody Point to become the commercial centre for Western Newfoundland. But, in 1922, a fire destroyed the business district of Woody Point; some of the businesses were rebuilt while others were not. During this time, many people choose to seek work in Corner Brook and Deer Lake.

Today the residents of Woody Point still make a living by fishing but the tourism sector has created new business and employment opportunities. The building of the Discovery Centre by Parks Canada has added significant tourism capacity to this region of Bonne Bay. In addition, the Woody Point has a school, youth centre, recreational facilitates and an active heritage committee. The Woody Point Heritage Committee has been very successful in restoring and promoting the town's heritage assets. This has resulted in new uses for old buildings, expansion of arts and craft activities, new business development and provincial heritage status for the old business district. Examples of this work includes the Woody Point Heritage Theatre, the Roberts House Information Centre and Roberts Fish Store.

The quality of life offered by the town and region has in recent years attracted new residents from other parts of Canada and outside the country. These new comers have brought new perspectives and energy to Woody Point and area. One example is the Woody Point Writers Festival. The combined efforts of all residents have resulted in new cultural, social and business activities.

Community and business services in Woody Point include a K-12 school, Bonne Bay Academy, a local site for the Tree House Family Resource Centre, retail stores, liquor store, automobile repair, gas station, various churches and restaurants for residents and visitors. A number of fishing enterprises work out of Woody Point and their fishing stores/sheds are located along the town's waterfront. In addition, recreational services are available – hockey arena. Library, public internet access, health care, regional recreational services – indoor swimming, police services and further business services can be found in near by towns in the Bonne Bay region, i.e. Norris Point and Rocky Harbour.

Woody Point is also noted for its natural beauty with the beautiful clear waters of Bonne Bay to the east and the beautiful rolling Bonne Bay Hills on the west.