Katikati was and remains a Maori community that derived from the waka Mātaatua and is affiliated with the tribal group in Tauranga, Ngāi Te Rangi. It was later settled in 1875 by Ulster Scots people from County Tyrone in Ireland through the Orange Institution. The settlement was established by the Irishman George Vesey Stewart, who led two groups of settlers there aboard the ships Carisbrook Castle (1875) and Lady Jocelyn (1878). The land upon which the town was built was confiscated from local Māori after the Land Wars and was given to the settlers by the Central Government.
Matahui Road School is an independent primary school that was established in 1988. It is governed by the Matahui Road School Charitable Trust.
Katikati is known for its many murals painted on walls of commercial buildings, started in the 1990s as a project to regenerate tourist interest in the town and district, indeed the effort was recognised with the bestowal of New Zealand's 'Most Beautiful Small Town' award for towns of less than 8,000 population in 2005 by the Keep New Zealand Beautiful Society.
Middle school education is provided by Katikati College (Years 7–13). Katikati Primary School (Years 1–6) and Matahui Road School (Years 1–8) supply primary education.
