Bait Reef lies close to shore off Trial Bay Gaol, a patch of reef about the size of two tennis courts running parallel to the beach, and has built a strong local reputation as one of the best macro and photography dives in the South West Rocks area despite its unglamorous size and depth. The reef's holes and crevices support an exceptional density of moray eels — often several sharing the same hole — alongside cuttlefish ranging from miniature juveniles to large adults, and a genuinely wide variety of nudibranchs that reward divers willing to look closely rather than cover ground quickly. Resident green turtles are commonly seen, sometimes in numbers unusual for such a small site, and pineapple fish, lionfish and anglerfish add to a species list that is disproportionately rich for the reef's modest ten-metre maximum depth.

Schools of bait fish and squid move through in season, giving the reef its name, and juvenile catfish schooling in tight, bright yellow-and-black balls are a reliable sighting for those patient enough to find them. Spotted and ornate wobbegongs, fiddler rays and shovelnose rays round out a marine life list that punches well above the site's size. During the humpback whale migration, divers here often hear whale song clearly underwater even though sightings from the water itself are rare.

Bait Reef is normally accessed by boat as part of a South West Rocks day out, but shore diving is possible in the calmest conditions with a rock entry and exit; either way it is considered one of the best second dives, photography dives and night dives in the area, valued locally more for the density and variety of small life than for any dramatic topography.

Trial Bay shore sites are reached via Arakoon / Trial Bay Gaol Road, off the southern side of South West Rocks. Park at the Trial Bay Gaol camping ground or the roadside pull-offs along the bay and carry gear a short distance (50-150 m) down to the sand or rock entry points. Entry is a simple sandy-beach wade or a rock-hop over the shore platform depending on the exact spot and swell; check conditions from the headland first as the bay can have surf and rip movement in onshore weather.

Trial Bay faces roughly east/north-east and is sheltered from southerly swell by South West Rocks headland, but is exposed to easterly and north-easterly swell and wind, which raise surf and reduce visibility quickly. Best diving is on light winds and low swell (under 1 m), commonly in autumn and early winter. Visibility drops for days after heavy rain due to the nearby Macleay River mouth.

Rip currents can form along the beach in bigger surf — check with a lifeguard or local operator before entering. Good for night dives on calm evenings.

Enter from the Trial Bay Gaol foreshore and work the reef slowly at 3-6 m, checking holes and crevices methodically for the site's dense population of eels, cuttlefish and nudibranchs rather than following a fixed route; an unhurried macro-focused dive suits the terrain best.

South West Rocks Dive Centre and Fish Rock Dive Centre run guided dives here, particularly for photography and night dives; independently diveable in calm conditions.