Dragon Rock, also called Shark Gutter, is the grey nurse shark site at the Tollgate Islands, a small group of rocky islands in the middle of Batemans Bay. It is the best-known dive in the bay. Grey nurse sharks congregate in the gutter between the main islands, mainly from November to March or April according to the Marine Life Network, with Spirit Divers putting the best viewing between February and April. The Marine Life Network lists depths of 3–14 m, with gutters with gravel floors, gullies and swim-throughs, and records snapper and wobbegongs as well as the sharks. Downtoscuba gives a maximum of 25 m off the edge.

Grey nurse sharks are critically endangered on the east coast of Australia. They gather in sheltered gutters like this to rest and socialise, hovering almost motionless in the current. Seen close up they are large, bulky sharks with ragged teeth, but they are placid unless harassed. The Tollgate Islands are a sanctuary zone within the Batemans Marine Park and grey nurse shark critical habitat, so special rules govern diver behaviour, and the fish life around the islands is abundant as a result. Expect schools of yellowtail, sweep and bream, big blue groper, snapper, morwong, wobbegongs and eastern blue devilfish, with rays on the sand.

The depth is modest and the islands give shelter, so this is a site that suits Open Water divers. The key is behaviour: stay low at the edge of the gutter, move slowly, and let the sharks come to you. Nearby sites such as The Canyon and The Shotgun often see the same sharks passing through.

Boat access only. Beneath the Bay leaves from the Hanging Rock ramp in Batemans Bay and runs out to the Tollgate Islands in the middle of the bay, about 10–15 minutes; private boats also use the ramps at Batehaven, Wimbie Beach and Mosquito Bay (Lilli Pilli). There is no shore access – the islands are a nature reserve and landing is not permitted.

Operators anchor on the edge of the gutter so that divers can settle quietly beside it rather than swimming through the sharks' resting area.

The Tollgate Islands sit in the middle of Batemans Bay and act as a windbreak, so some side of the group is usually diveable – the Abyss guide notes you will almost always get a dive in whatever direction the weather comes from. Dragon Rock itself is best in light to moderate conditions; a large swell surges through the gutter and moves the sharks around. Strong afternoon north-easterlies in summer make the anchorage choppy, so morning dives are best.

Visibility drops after heavy rain when the Clyde River floods the bay. The grey nurse season is summer and early autumn.

Descend to the edge of the gutter, settle on the bottom or hover at the edge and let the sharks swim past; do not enter the gutter or block their path. After watching for part of the dive, move slowly along the neighbouring canyons and swim-throughs, then return to the anchor.

Beneath the Bay's headline dive – the grey nurse colony at Dragon Rock/Shark Gutter. Spirit Divers used it even for Open Water training dives. Visiting Sydney clubs (Abyss and others) run it on weekend trips; downtoscuba lists it as the main grey nurse site.