Two Peoples Bay is a large, sheltered bay about 35 km east of Albany, protected within a nature reserve famous for the rediscovery in 1961 of the noisy scrub-bird and later of Gilbert's potoroo, both once thought extinct. The bay takes its name from the 1803 meeting there between the American sealer Union and the French exploring ship Géographe – the 'two peoples'.

For divers it offers easy, uncrowded shore diving. Marine Life Network describes rocky reefs of 10-12 m dropping to 15 m, with old wives, wrasse, leatherjackets, scalyfin, harlequin fish, morwong, perch and occasional leafy sea dragons, sponges and plate corals, and extensive seagrass meadows. It notes a surprising variety of invertebrates and rates the bay as a great night dive.

The reefs are granite, broken into boulders and ledges with kelp and sargassum on top and sponges and encrusting growth below. The seagrass beds between them are nursery habitat and the place to look for cuttlefish, squid, flathead, stingarees and, with patience, leafy sea dragons in the weedy margin. The visitor centre, picnic area and small ramp make the logistics simple, and the reserve's scenery – white sand, granite headlands and peppermint woodland – makes it a pleasant day out.

Nearby are Little Beach and Waterfall Beach, two of Albany's most photographed beaches with clear-water snorkelling, and Coffin Island, a sea lion and fur seal haul-out just south of the bay that is reachable by small boat. Together they make Two Peoples Bay a worthwhile alternative to King George Sound for divers with their own gear who want to explore independently.

From Albany take Lower King Road and Nanarup Road east, then turn onto Two Peoples Bay Road (about 35 km, 30-35 minutes). Follow the signs to the Two Peoples Bay visitor centre, where there is parking, toilets, a picnic area with gas barbecues and a small boat ramp. Shore divers enter from the beach beside the picnic area and swim out to the granite reefs along the eastern shore.

Divers with small boats can launch at the ramp and reach reefs across the bay and around to Coffin Island (10-15 minutes). A 4WD track (Sinker Reef Track) gives access further along the shore. Park entry fees apply.

Two Peoples Bay faces south-east and is protected from the prevailing south-westerly swell by Mount Gardner headland, so it is diveable in most weather except easterlies and south-easterlies, which blow directly into the bay and stir up the sand (Marine Life Network: 'good all weathers except easterly'). Summer afternoon south-easterly sea breezes can make it choppy – dive in the morning. Large south-westerly swells can still wrap into the bay's western end.

Enter from the beach by the picnic area, snorkel out to the edge of the granite reef and descend to 8-10 m. Follow the reef edge where it meets the seagrass, look for sea dragons in the weed margin, then return along the shallower reef to the beach.

No regular operator; independent shore diving and club trips. South Coast Diving Supplies (Albany) supplies air, hire gear and local advice.