Colac Specialist School was originally known as Colanda Education Unit. On Sunday August 12th 1984, the Minister for Education Mr Fordham and the Minister for Health Mr Roper, jointly announced the intention of the Government of the day to provide educational services for children at Colanda, a residential training centre operated by Community Services, Victoria.
The Colanda Education Unit opened in February 1985 with an enrolment of 56 students. In 1986 the school became part of the Victorian Education Department and the name changed to Colac Special Developmental School. The inaugural principal was Mr Andy Sholl. In 1998 the school was renamed Colac Specialist School to reflect its broadened enrolment criteria.
In 1999 the school relocated to its current site in Wilson Street, central Colac. Significant curriculum, building and ground's development has taken place during the past decade.
In February 2010, the school community proudly celebrated 25 Special Years.