BlackWords was funded in 2006 and 2007 by the Australian Research Council, through the Linkage Infrastructure Equipment and Facilities (LIEF) scheme and AustLit partner universities , in order to re-design and re-orient the now superseded Aboriginal and Torres Strait Islander Writers subset. It is the most authoritative, accessible and up-to-date site for the discovery of information about Indigenous writers, writing and storytelling in Australia.

In 2006, the development of the subset came under Indigenous control, allowing Indigenous writers, storytellers, academics and researchers to determine the look, content and scope of the subset. The establishment and development of BlackWords was coordinated by author Dr Anita Heiss and there is a team of research assistants working at universities around Australia. BlackWords development and future direction is guided also by a reference group of Indigenous writers and researchers and members drawn from AustLit's partner institutions.

BlackWords will continue to develop over the coming years and will be maintained in the long term by Indigenous researchers and indexers working at partner universities or organisations.

The BlackWords Research Community grew out of the recognition that Indigenous works and subject matter were a special subset within the general category of Australian literature, requiring a distinctive brand, voice and identity. After consultation among Indigenous academics and community members the distinctive logo was developed. On 6 June 2007, BlackWords was launched at the State Library of Queensland by Uncle Sam Watson.

From this beginning the increasingly rich literary heritage of Indigenous Australians continues to be woven into the AustLit database and disseminated through cyberspace. BlackWords remains unique in that the content and representation of Indigenous authors, their stories and their literary voices are generated and maintained by a national team of Indigenous people.