Read more about Monster Island at: Wikipedia
Official Site: Toho
Monsterland was introduced in the 1968 film Destroy All Monsters. The United Nations had decided to gather all the Earth's daikaiju (giant monsters) and corral them into a single location, then keep them there. The Ogasawara Islands were chosen for the project and by 1968 ("at the end of the 20th century" in the original Japanese version), Godzilla, Rodan, Mothra, Anguirus, Gorosaurus, Kumonga, Minilla, Baragon, Manda, and Varan were all residents of Monsterland. Various security devices were installed on the island to make sure the daikaiju wouldn't escape. Among the various devices were machines that sprayed different types of mist that Godzilla and Mothra shied away from, as well as a magnetic wall that prevented Rodan from flying away.
All was well until the Kilaaks invaded, taking control of Monsterland and letting loose the monsters upon the world. After the Kilaaks were foiled, the monsters returned to Monsterland and have been living there since.
In the Japanese version of Destroy All Monsters, its mentioned that Monsterland was set up "around twenty years ago". That would put it at around 1979, since the film is set in 1999.
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