From 1923 until 2005, St. James' Menangle was a branch church in the Camden Anglican Parish. For many years there was one morning service which would be taken by the assistant minister to the rector at St. John's Camden. During most of the 1990's this responsibility belonged to Rev Donald Howard. Rev Robert Luscombe assumed responsibility for Menangle during 2001 but was replaced by Rev Craig Fulton in August 2002 due to declining health.
A significant strategic decision was then made by the Camden Parish during 2002. That decision was to build a house for a minister to live in Menangle village. The Fulton family moved into the house on 27th December, 2002 and the impact of having a minister live among the people of Menangle was immediate. A new morning service was added on 1st February 2004 and the number attending church went from 50 adults and 20 children to 70 adults and 30 children virtually from one week to the next. Probably half of those who attended lived in the village itself.
During 2004, a minor crisis between the rector at Camden and his assistant minister at Menangle led to the involvement of the then Bishop of Wollongong, Reg Piper. The Bishop was of the opinion that Menangle could become a parish in its own right, and after gaining the approval of the Rector and wardens at Camden, and the Archbishop of Sydney, Peter Jensen, Menangle was granted provisional parish status on 1st January 2005. At the Sydney Anglican Synod in September 2007, full parish status was granted and that occurred on 1st January, 2008.