1902 Bay first formed after creation of port breakwaters. The motion of the waves turned the shingle to sand. The area was decided to be created into a “European style beach resort” from 1902.

This is the only sandy beach between Oamaru and Banks Peninsula.

The borough council leased the new foreshore from the harbour board in 1902 and created a European-style beach resort.

Many hours of voluntary labour went into creating a promenade and pleasing recreational facilities.

Tea rooms, a hot-water swimming pool and a band rotunda were built.

A ‘sound shell’ for concerts replaced the rotunda in 1937.

Later, a piazza was built to improve access to the bay from the top of Bay Hill.

Christmas carnivals have been held at Caroline Bay since 1911, attracting thousands.

In 2020, the area the beach had extended by 34 hectares.

There has been a continual progression of beautification and development on the Bay over the decades, particularly as the beach has continued to extend seaward providing greater areas for lawn and facilities.