After the founding of Shellharbour by the district's pioneers, starting from land clearing in 1851, the village gradually started taking shape after the then Peterborough was divided into 80 farms.

In 1858 the stone Church of England and Presbyterian churches were built, followed by the Catholic Church in 1860.

As the town grew a courthouse and police station were built in 1863. The town's fourth stone church, then known as the Wesleyan Church, was also constructed in 1863. The church became the Uniting Church in 1977.

Current Church Council secretary Cliff Bell said the church's congregation was extremely excited to be celebrating such a significant milestone.

"The church was first used on February 23, 1865, with the Reverend W. Curnow conducting the opening service," Mr Bell said.

"The church has made somewhat of a comeback in recent times, with numbers falling quite alarmingly at one stage, but with around 70 members now, the church is, thankfully, in quite a strong position again.

"In the early days we were part of the Kiama parish and the minister would have to come from Kiama for regular Sunday services, which must have been quite a huge distance in those days."

The church was built on Dinnings land, donated by Mayor T. A. Reddall. The Reverend J. C. Turner from Kiama estimated the building cost £420.

The red stone probably came from the original swimming pool to the left of the harbour causeway and the quarry where the Guide hall is now situated.

The foundation stone was laid by John Graham on November 3, 1863.

By the time the church was opened the debt had been reduced to £80.

Renovations to the church were completed in 1900 and the church was extended in 1979.

Celebrations next weekend will include a dinner on Saturday night, followed by a 9am Sunday service, conducted by former Shellharbour minister the Reverend Rob Nance, followed by morning tea and the cutting of the birthday cake.