Dot Kleeman writes in the "The Winding tracks to Peaceful Bay" that many stories have been told of the origin of Flag Hill.
One was that the salmon fisherman would put the flag up when the salmon were running to let them know that a school of fish was on the beach and help was required, but Norm Bevan clarified this was not the case, as help was required at dawn not dusk.
Another was that the first kids to arrive for holidays were to hoist the flag and let the camp know that people were in residence. It was in fact a traditional privilege - climbing the hill and hoisting the flag boasting to be the first to arrive, but the first honour in the 1940's or 50's goes to Shirley Hoar.
"I did, and it was not a flag but it was the next best thing and it was all we had - it was my bloomers - they were the closest thing to a flag, they were big, they were pink and clean as I had just put them on. We were walking to the beach when we decided there should be a flag on the hill to let the world know we were here!"
The following year Shirley made a flag and again climbed the hill through the thick scrub to secure the flag to a bush, and continued to do this each year.
It soon became tradition, all the kids wanted to be in on the act, and so the name "FLAG HILL" evolved.