Killarney, Ont, incorporated as a municipality in 1999, population 505 (2011c), 459 (2006c). The Municipality of Killarney is located along Killarney Channel on the north shore of Georgian Bay. Nearby is Killarney Provincial Park. The town is the result of the merger of the township of Rutherford and George Island (incorporated 1929) with surrounding unorganized townships.

Etienne Augustin de la Morandiere established a fur trade post here in 1820. The Ojibway had named the area Shebahonaning, "canoe passage," in reference to the channel, but the community was later named Killarney after a town in Ireland. Logging, fishing and mining supported Killarney's early economy. The commercial fishery of whitefish and lake trout brought prosperity to the community, but by 1950 the fishery was in serious decline. In the early 1960s a highway connecting Killarney to the Trans-Canada Highway opened the area to tourism. The town now relies on tourism surrounding Killarney Provincial Park and yachting in Georgian Bay.