After British settlement, the area was first known as 'Rush Cutting Bay' because the swampy land was covered in tall rushes used by early settlers for thatching houses. In 1878, 2 hectares (6 acres) were reserved for recreation; and, after reclamation work was completed, Rushcutters Bay Park was created, bounded by New South Head Road and the bay at Sydney Harbour.
Rushcutters Bay was once the site of the famous Sydney Stadium.[3] On Boxing Day 1908 at the Stadium, Tommy Burns lost his heavyweight title to the legendary Jack Johnson, famously the first African-American to win a world title. For many years Rushcutters Bay was home to White City Stadium for major tennis tournaments, prior to the establishment of tennis facilities at Sydney Olympic Park.
In the 20th century, when neighbouring Darlinghurst was seen as down-at-heel, some businesses and residents abutting that boundary would, for appearance's sake, list their addresses as being in Rushcutters Bay. This phenomenon persists despite Darlinghurst's gentrification; for example, a BMW dealership on Craigend Street, Darlinghurst, provides customers with an incorrect address.[5]
According to the 2021 census, there were 2,335 people living in Rushcutters Bay. Of these:
Age distribution: Residents had a similar range of ages to the country overall, except for notably fewer children. The median age was 38 years, the same as the national median. Children aged under 15 years made up 5.7% of the population (national average is 18.2%) and people aged 65 years and over made up 18.4% of the population (national average is 17.2%).
Ethnic diversity : Just over half (56.5%) were born in Australia, compared to the national average of 66.9%; the next most common countries of birth were England 6.6%, New Zealand 3.8%, Brazil 1.4%, United States of America 1.3% and South Africa 1.3%. At home, 72.3% of residents only spoke English; other languages spoken at home included Spanish 1.9%, French 1.6%, Mandarin 1.5%, Italian 1.2% and Portuguese 1.2%.[8]
At the 2016 census, the suburb of Rushcutters Bay recorded a population of 2,547 people.[9]