Coral Bay was originally known to only a handful of West Australians. Gradually as more people became aware of the area a caravan park and motel were built in 1969.

With the rapid improvements in the area it has become a popular tourist destination with very good accommodation to offer the whole family. Western Australia's largest coral reef (a Maritime Reserve) off Point Maud provides a sheltered bay for most aquatic activities. The water is crystal clear making it a paradise for swimming, snorkelling, skin diving and underwater photography.

With its natural beauty and unique marine wildlife Coral Bay continues to enhance its reputation as one of Western Australia's most beautiful holiday destinations.