The division of Daly was created following the electoral boundaries redistribution in the year 2000. It was named after the Daly River which flows though the division. The 2015 electoral boundaries redistribution saw Marrakai move to the division of Goyder while Daly gained Douglas-Daly, Kybrook Farm and Pine Creek from Stuart.
Daly surrounds Darwin city and environs and extends to the south and west of the Top End. It is bounded by Kakadu National Park in the east, the Fitzmaurice River in the south and Darwin Harbour in the north. Daly includes the towns of Adelaide River, Batchelor, Berry Springs and Dundee Beach and the communities of Douglas-Daly, Kybrook Farm, Nauiyu Nambiyu, Nganmarriyanga, Peppimenarti, Pine Creek and Wadeye.
Daly has been held by the Country Liberals Gary Higgins MLA, since the 2012 Northern Territory Election.