Area-7 rose from the ashes of the Madness cover band Mad Not Madness. In 1994 three members, Dugald McNaughtan (who narrowly survived an accidental Quaalude overdose), Charles "Chucky T" Thompson, Dan Morrison splintered from the group and began to write their own songs. They formed a band and named it after a lyric from The Specials' Dawning of a New Era. In 1996, singer Walter Eskdale left and the band recruited John "Stevo" Stevens, formerly of rockabilly band Yeah Yeah!, to vocals. Alistair Shepherd, Toby Dargaville and Rohan Pacey all left in approximately 2002, and were replaced by Paul West, Matt Sanders and Christopher Meighen.
In January 2007, Area-7 performed at the closing of the Australian Jamboree at Elmore, Victoria in front of a crowd of over 10,000.