Innisfail is the largest community within the Johnstone Shire. The local government area of Johnstone Shire covers 16,392 kilometres, 54% of which is the protected West Tropics World Heritage Area. Johnstone Shire is the second largest urban centre within Far North Queensland and is bordered by several local government authorities including Cairns City, Cardwell Shire, Eacham Shire and Herberton Shire.
As reported in the 2001 Australian Bureau of Statistic's Census Report, the Johnstone Shire's estimated residential population was 19,954, comprising of 10,197 males and 9,757 females, with 1644 people identifying themselves as being of Indigenous origin. Innisfail was reported in the 2001 Census as having a population of 8,989 people.
The Census also reported a negative population growth for this local government area of 4.7%. However, the Johnstone Shire Council reports that this trend has since been reversed with a population increase of approximately 70 new residents. Additionally, the Johnstone Shire Council's Economic Development report highlights the potential for continued population growth as more people move into the area for lifestyle reasons such as seeking a 'sea change'.
The Johnstone Shire’s top three industries by business registration are:
The main agricultural industries include sugar cane, banana production and commercial fishing. Johnstone Shire Council's economic report (2005) highlights a focus on tourism and the diversification of primary industries as a major focus for the area.
The most significant issue that continues to face the community of Innisfail is the devastation created by Cyclone Larry in March 2006. Housing and accommodation has become limited, education and employment has been disrupted and rebuilding continues to be a major part of life in Innisfail. As expected, primary industries have also faced significant challenges following Cyclone Larry.