The Department of State Development was formed on 1 January 2009 as a result of the Department of Industry and Resources being abolished under the Barnett Government. Two other departments - the Department of Mines and Petroleum and the Department of Commerce - were formed as a result of this departmental restructure.

The Department of State Development was tasked with providing a focus on strategic development of Western Australia, particularly major state development projects and strategic economic policy. The department incorporated the functions of the Office of Development Approvals Coordination which had previously been an office within the Department of the Premier and Cabinet.

Under the McGowan Government, the Department of State Development was merged with the Department of Commerce and the Western Australian Tourism Commission on 1 July 2017 to form the Department of Jobs, Tourism, Science and Innovation.