Mathinna - between two worlds, abandoned, broken was created by artist Barbara Mellor when she discovered the story of Mathinna - the namesake of the town on the North-East Coast.

"I felt I had to make this quilt because Mathinna's story is such a tragic one," Mellor said.

"Also, it is not a well known story so this was a way of putting the story out there."

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The quilt was started in 2017 and finished in 2018. The quilt had its background painted first, then Mathinna was appliqued onto it.

Her face and skin were created with abaca paper, which was then applied onto fabric with gel. Then her face was painted.

The work was a finalist in the Bay of Fires Arts Prize in 2018.

"I was really pleased it was accepted because it was the first quilt that had ever been in that competition," Mellor said.

"It was a bit of a break through moment."

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However, now the art quilt will be displayed in a whole new way, and as part of history.

"I was really pleased that the Governor wanted to come and see the quilt and talk about the quilt on Wednesday [when I handed it over]," Mellor said. "It was a very special day and it will be very well looked after there.

"My husband and I don't have any children and sometimes family members ... don't quite appreciate all the work that goes into making an art quilt like that. I think the historical significance of the quilt was quite important."

Mellor said she hoped people would read Mathinna's story and learn more about Tasmania's history.

"In my opinion, Mathinna's life was perhaps one of the first examples of the Stolen Generation in Tasmania," she said.

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Mathinna, originally known as Mary, was a young Indigenous girl who was adopted by Tasmanian Governor Sir John Franklin and his wife.

Mathinna was born on Flinders Island to the chief of the Lowreenne tribe, Towgerer, and his wife Wongerneep.

The Indigenous girl spent her life torn between Aboriginal settlements and the orphan school she was left in, after Sir Franklin was recalled to England, before she drowned in 1852.

"That's what my quilt is trying to display is that she was between two worlds, she didn't fit in anywhere," Mellor said.

"It's a very sad story I think because the actual story started with people in power and people who were supposed to be examples to us all, so from that point of view it was very tragic."