In 1949, the then priest of the Cronulla parish, Monsignor James Donovan, proposed to establish a building on the site of the current school to be used as a church and school. The building was completed in 1949 and was dedicated to Our Lady of Fatima. This became a Church and a school in 1950. The new school was staffed by dedicated nuns from the Order of the Sisters of Mercy. The enrolment on the first day was 78. The staff consisted of Sister Mary Malachy McGrath and Sister Mary Chanel James. The Sisters travelled each day from the Convent in Coast Avenue, South Cronulla (where Stella Maris is today). Today, the school is large and thriving, and continues to follow the Mercy Values of Spirituality, Community, Service, Social Justice and Works of Mercy.