The PS Yarra Yarra is a haunting wreck close to Newcastle Harbour. Built in Scotland in 1851, she was an iron paddle steamer of about 555 tons and 183 ft (56 m), according to the Newcastle shipwreck register. On 15 July 1877, carrying about 500 tons of coal, she lost steerage in a gale and was overwhelmed by big seas on the Oyster Bank, the notorious shoal just north of the harbour entrance.

All 18 on board were lost. Today she lies upright in about 15 m. Grey Nurse Charters notes that both paddlewheels are visible, with the port side intact except for the missing timber paddles - a rare sight, since paddle steamer wrecks of this age usually collapse into flattened debris.

The iron wheel frames, hubs and spokes stand clear of the sand, and the hull outline and machinery area can be traced between them. Marine life reflects the estuary-influenced setting: Grey Nurse Charters lists blind sharks, blue wrasse and young mulloway, and bream, luderick, leatherjackets and yellowtail typically gather around the structure. Encrusting growth covers the ironwork.

The catch is visibility. The Hunter River pours out of the harbour a few hundred metres away, so the wreck is best dived near high tide after a spell of low rainfall. On a good day the paddlewheels loom out of the green water; on a bad one, visibility may be only a few metres.

At 15 m the depth is modest, but the proximity to the shipping channel, the current and the variable visibility mean it is best done with a charter that knows the site. For wreck enthusiasts, the upright paddlewheels make it one of the most distinctive wrecks in NSW.

Charters and private boats leave from Newcastle Harbour - the Carrington or Stockton boat ramps, or Newcastle Cruising Yacht Club/Marina precinct on Wharf Road - and run out past Nobbys Head through the harbour entrance, a busy commercial shipping channel where port traffic has right of way and Port Authority rules apply. Parking with trailer bays is available at both ramps. The Yarra Yarra is only a few minutes from the ramps, just north of the harbour entrance off the Stockton side.

Because the site is close to the shipping channel, diving is timed around port traffic and the skipper maintains a lookout.

The Newcastle offshore sites are exposed to the full Tasman swell and generally need less than about 1.5 m of swell and light winds; strong southerlies and north-easterlies both make the run from the harbour uncomfortable. Visibility is the main variable: the Hunter River outflow through the harbour entrance stains the water for days after rain, so the best diving follows a dry spell and is usually timed around high tide, when clean ocean water pushes in. The East Australian Current brings warmer, clearer water from late summer into autumn, while winter can be cold (around 15-16 °C) but surprisingly clear.

The Yarra Yarra is the most affected by the Hunter outflow: dive near high tide after a period of low rainfall, and avoid the ebb.

Descend to the upright hull and orient on the paddlewheels. Tour the port side (largely intact), the paddlewheel frames and the machinery area, then return to the line. Keep the dive close to the wreck because visibility can be limited.

Protected historic shipwreck under the NSW Heritage Act.

Grey Nurse Charters dives the Newcastle wrecks and reefs by arrangement from Newcastle Harbour and Swansea; Dive Newcastle and local clubs dive them from private boats. There is no fixed daily schedule - trips run on demand and conditions.