Just three decades ago, craft distilleries were illegal on Tasmania, the remote and strikingly gorgeous island state to the south of the Australian mainland.

But today, in trendy bars in the sleepy Tasmanian capital of Hobart, as well as in Melbourne and Sydney, there are entire pages on menus devoted to Tasmanian gins. On the shelf at Society Salamanca, a lively gin-focused cocktail bar near the harbor in Hobart, for example, there are now more than 40 Tasmanian gins from 26 distilleries, with more on the way.

Tasmanian gin is on the rise thanks to the overturning of an archaic law banning small-scale distilling in Australia, intended to discourage backyard moonshiners and make the industry easier to control. An aspiring Tasmanian distiller challenged the federal statute in 1989, paving the way for a boom first in craft Tasmanian whiskies, and more recently, gins. Most of the gins — distilled by young, small-batch entrepreneurs — have popped up in the last five years.

“Almost every month now, you hear of a new gin” in Tasmania, said Louise Radman, a self-taught gin distiller, who along with her husband, Nav Singh, started their own label, Sud Polaire, in Hobart two years ago. “It’s quite a young community here; it’s very collaborative,” she said. “All the other bars are really excited when you release something new or different.”

Lately, gin has become a trendy craft distilling enterprise worldwide from Finland and California to the craggy islands off the Scottish coast, and Australia has jumped on the bandwagon too. While vodka, whiskey and rum consumption is declining in Australia, consumption of locally made gin was up 33 percent in 2017 from the year before, according to the International Wine and Spirits Report 2018.

Though not as big as other Australian gin labels, Tasmanian gin makers are starting to carve out a name for themselves. That’s partly because of their innovative use of native plants and other locally sourced botanicals, such as Tasmanian mountain pepper berry (an ingredient in most gins here), tea tree blossoms, sloes, saffron, wakame seaweed and even sheep whey.

Tasmania’s unusual history has also influenced its gin makers. Distilling had virtually disappeared on the island for more than 150 years because of a succession of restrictive laws, the first a statute passed in the early 1800s during the penal colony days, outlawing all distilleries. It was replaced in 1901 by a federal prohibition on small-batch distilling anywhere in Australia below 2,700 liters (just over 700 gallons).

The ban lasted until 1989 when the whiskey maker Bill Lark successfully lobbied politicians to overturn the federal law, then launched the island’s first modern distillery three years later, named after himself. “When we were starting, we only had a tiny, little still and we didn’t really know what we were doing and we wanted to learn,” Mr. Lark said.

In recent years, a steady stream of enterprising Tasmanians has taken the leap into gin distilling, bringing a youthful, pioneering spirit to the industry.