The Australian cypress tree, Callitris intratropica, has been used for healing purposes for countless years by the Tiwi people of Bathurst and Melville Islands, located north-east of Darwin. Exclusive to tropical Australia and one of 14 indigenous Australian cypress pines, it is known as "Karntirrikani" by the Tiwi people, who use the wood to make spears, musical and ceremonial objects, and burned it as a mosquito repellent. The bark was used in soap making, and it was also used to help with skin conditions.

First used by Europeans in Australia in 1905, the timber was then milled for building. Being tough and exceptionally resistant to termites and severe climatic conditions, initially,it seemed a good choice for a plantation timber resource. Large scale plantations were established in the 1960s and 70s on Melville Island and near Darwin, with the aim of producing timber for construction.

However, Callitris intratropica grows very slowly, and the prospect of reasonably quick plantation returns appeared much less certain after 10 years of slow growth. Then, after a severe cyclone devastated Darwin in 1974, building codes were changed to replace timber house frames with steel. The plantations were officially abandoned in 1978 as a source of building material, but today have undiminished value as a source of essential oils and natural products.

From the heartwood of Callitris intratropica are produced small quantities of Blue Cypress Oil and larger quantities of non-volatile extractives. In 1995,The Australian Essential Oil Company Pty Ltd, conducted an initial study into the development and production of Blue Cypress Oil.

The findings of the study led to the establishment of a new company, Australian Cypress Oil Pty Ltd, which entered into a license agreement with the Tiwi people of Northern Territory, who own the land on which most of the Callitris intratropica plantations grow. The new company also successfully tendered with the Northern Territory Government for the rights to access and harvest the abandoned plantations, and in 1997 was granted the first licence to harvest the mainland stands of Callitris intratropica.

The 3000 hectares of Northern Territory plantations which are managed and harvested by Australian Cypress Oil Pty Limited are the only existing commercially viable plantations in the world.