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Prevelly is a coastal townsite in the south west region, 287 kilometres south southwest of Perth and nine kilometres west of Margaret River. The area was privately subdivided around 1960, and named Prevelly Park by the developers. In 1977 the Shire of Augusta_Margaret River requested the development be declared a townsite, and the townsite of Prevelly was gazetted in 1978.
The naming of Prevelly is dedicated to the Monastery of Prevelli on the island of Crete. A Greek style chapel that was built at Prevelly as a tribute to the Greek community on Crete during the world war was officially opened 4 June 1979. Mr. E.G. Edwards, who sponsored the building of the chapel built the holiday village of Prevelly and named it after the Monastery of Prevelli on Crete. He built the chapel to commemorate the courage of Cretan villagers who helped him and other servicemen after they escaped from the Germans.