It might be best known in tourism circles for its whale shark swims and stunning Ningaloo Reef, but the tiny West Australian town of Exmouth was born at the height of the Cold War to play a critical role in the fight against communism.

In 1967, then-prime minister Harold Holt commissioned the Naval Communication Station at Exmouth which sent encrypted messages to United States and Australian navy submarines.

It is a job the fledgling Exmouth community excelled at, and by the nineties the base — known in some circles as North West Cape, or earlier as Potshot — had earned itself a reputation as the best in the business, according to United States Navy Captain James Jenks.

"Whenever I needed the strongest communication signal, I always made sure the antenna was pointed towards Australia to get that signal," he said.

The tallest towers at the base are 387 metres tall, and send communication signals to submarines right around the globe. ( Credit: Australian Department of Defence )

Captain Jenks was in Exmouth this month alongside some of the town's founding figures to celebrate its 50th birthday.

While the station sent many critical messages to submarines to assist with military operations, Captain Jenks said one of his fondest memories was learning of the birth of his son via a station transmission.

"It said 'Congratulations Lieutenant Jenks on the birth of your son, mother and son doing well' ... and that originated from the antennas here at Harold E Holt Communication Base," he said.

"I can't talk about where the submarine was ... [but the message had travelled] thousands and thousands of kilometres."

Despite the US Navy staff leaving the base in 1992 and handing control over to Australia, the base continues to play the same vital role in the US-Australian military alliance today as it did in 1967.

American technician Russell Levien arrived in Exmouth 32 years ago with the US Navy and is now running the base.

He considers himself "nearly a local".

"All the signals are encrypted of course. We've got a 22-kilometre sine wave that hugs the earth and penetrates the ocean," Mr Levien said.

Thirteen towers — some of which are 387 metres tall — work as giant antennas sending messages to submarines in oceans across the world.

Australians and Americans forge bonds

The strong American presence at Exmouth resulted in a deep exchange of culture and friendships which have spanned five decades.

Exmouth resident Natasha Tate said she remembers paying 'three quarters' to play at the US-inspired bowling alley and cinema as a teenager.

According to Ms Tate, it cost 75 cents to play a game of bowling at the alley or to see a movie at the cinema. ( ABC North West: Joseph Dunstan )

"They had a pretty good confectionary shop, so we were buying American lollies and American cool drinks which obviously you couldn't get here ... so it was pretty cool to go back to town and wave that in front of your mates' faces," she said.

"We used to do both the national anthems — the American and Australian — at school, and raise both the flags.

"I grew up with lots of American kids, who I'm still in contact with on Facebook."

Nell and Laurie McDonald are some of Exmouth's oldest residents, having lived in the town for 52 years.

Laurie and Nell McDonald arrived while the town was still being built and lived in a caravan on the edge of town. ( ABC North West: Lisa Morrison )

When they first arrived they lived in a caravan with three young children while Exmouth was still under construction.

Their daughter Lisa was one of the first babies born in the town.

"It was pretty rough and very dirty and very dusty," Nell said.

"The friendliness of the town and the wonderful community that's grown here, that's my favourite memory."

Founding school principal Doug Bathgate says it's been emotional to return and see how it's grown in 50 years. ( ABC North West: Joseph Dunstan )

Exmouth's first school principal Doug Bathgate said the northern WA town had to fight to get the resources it needed in its first few years.

"Our only communication with Perth [WA Education Department] was by telegram and I sent a telegram saying 'no school, what shall I do?'" he said.

After receiving an unsatisfactory response, Mr Bathgate drove to Perth and stacked a trailer with books and school supplies, despite the fact that there was no registered school in Exmouth.

The overloaded trailer broke down on the dirt track past Geraldton, requiring a roadside repair job to finally get the books into town.

"We shouldn't have had to do it [that way]," he said.

Mr Bathgate said he was "very emotional" to see just how much had been achieved in the 50 years of one of Australia's youngest towns.

The town remains a critical part of Australia's defence capability, and will undergo a $300 million upgrade to improve its space surveillance capacity in the next few years.