The Coodanup Park Estate was subdivided in 1956, including Beachley Street and the triangle between Wanjeep and Beacham Streets, and the suburb was gazetted in 1970.
In the late 1980s, following the construction of the Mandurah Forum shopping centre in 1983, demand in the area grew and the northern part of the suburb adjacent to the Mandurah Bypass was developed, with Coodanup Senior High School (now Coodanup Community College) being built there in 1989. In 1996, a park home estate, Mandurah Garden Estate Caravan Park, was constructed on Pinjarra Road at the Serpentine River crossing. Several small estates have since been developed in eastern Coodanup and work is continuing.
At the 2001 census, Coodanup had a lower-income population of 3,052 people living in 1,348 dwellings. Aboriginal people formed 5.8% of the population, while unemployment (24.4% in 2001) was far higher than in surrounding districts. Nearly 200 people live in the caravan park.
Coodanup is a residential suburb built as a series of estates each built around well appointed, pristine community parks, with foreshores along the Serpentine River and Harvey Estuary. It relies on the Mandurah Forum shopping centre (formerly Centro Mandurah) on its north-western boundary for commercial services. The suburb contains two community centres, a wildlife sanctuary at the river mouth, Mandurah Catholic College and Coodanup Community College.