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Watsons Bay is a harbourside, eastern suburb of Sydney, in the state of New South Wales, Australia. Watsons Bay is located 11 km north-east of the Sydney central business district, in the local government area of the Municipality of Woollahra.

Watsons Bay sits on the end of the South Head peninsula and takes its name from the sheltered bay and anchorage on its western side, in Port Jackson (Sydney Harbour). It provides views across the harbour to the Sydney Harbour Bridge. The Gap is an ocean cliff on the eastern side with views to Manly at North Head and the Pacific Ocean. Vaucluse is the only adjacent suburb, to the south.

History
Aboriginal history
The original inhabitants of the area that is now known as Watsons Bay, were the Cadigal people. The Cadigal referred to the area as Kutti. This indigenous group of people fished and collected shellfish in the waters and bays off South Head. They acquired their resources from Camp Cove and carved rock engravings there, which have since eroded from the cliff faces and rock surfaces that line the coastline.[2]

European settlement
The first Europeans arrived at the location on 21 January 1788 as the First Fleet landed and stayed overnight on Camp Cove.[3] A lookout was later built on the cliffs in 1790.[3] The first grant of 20 acres (81,000 m2) was made to Edward Laing in 1793 in the Camp Cove Area. Early homes were built for government and military officials working at the local installations.[3]

Watson's Bay was named after Robert Watson (1756–1819), formerly of HMS Sirius, when he had to beach his three vessels at Camp Cove for many years because of their being potentially sold by the Provost Marshal.[4] Watson was appointed harbour pilot and harbourmaster of the port of Sydney in 1811 and the first superintendent of Macquarie Lighthouse in 1816.[5]

Watsons Bay remained an isolated fishing village until development began in the 1860s.[6] The population grew from three dozen in 1828 to 122 in 1841.[3] Subdivision started in the 1850s.[6] After a ferry service opened in the 1870's, a number of hotels were opened.[6]

Today, The Gap is known as a notorious suicide spot.[7]

Dunbar
Main article: Dunbar (ship)
The Dunbar was wrecked near the entrance to Sydney Harbour, Australia in 1857 with the loss of 121 lives. The wreck of the Dunbar ranks as one of Australia's worst maritime disasters, with the event still retained in the social history of Sydney and NSW. [8] The Dunbar had mistaken the bay of The Gap for the harbour entrance. This led to the construction of the Hornby Lighthouse. In 1910, at Jacob’s Ladder, the anchor from the ship was recovered along with other relics and were placed in a museum behind the old Town Hall in Military Road by Vaucluse Council. The anchor was transferred to the cliffs of Gap Park by Ald. Coombes and a memorial was unveiled in August 1930.[9]