It is located on a bay of the same name on the southern shore of Port
Stephens about 60 kilometres (37 mi) by road north-east of Newcastle,
its nearest rail link. At the 2011 census, Nelson Bay had a population
of 5,396. It is a major tourism centre, particularly for dolphin and
whale watching, surfing, diving, fishing and other recreational aquatic
activities.
The eastern boundaries of Nelson Bay lie within the
Tomaree National Park while the southeastern section is almost entirely
within the park.
Nelson Head Light, an unusual lighthouse built in 1875, is positioned on the northeast corner