The Walter Hood was a 937-ton wooden clipper built in Aberdeen by the shipbuilder whose name she carried – 172 ft long, sharp-lined and fast, having once run from Aberdeen to Sydney in 80 days. For 17 years she was a regular trader between London and Sydney. In late April 1870 she was caught by a severe gale with mountainous seas; by 26 April land was sighted but she lacked the canvas to claw offshore, and at 7.30 pm she struck the coast about a mile north of Bendalong.

Over the following days the hull broke up as the crew fought to get ashore. Of the 35 people aboard, 12 were lost, including Captain Latto, who was washed from his cabin while retrieving the ship's papers, and several men who drowned attempting to carry lines to the shore. A stone memorial erected in 1927 marks the mass grave in the Cudmirrah Fauna Reserve, and the Lady Denman Museum at Huskisson displays artefacts recovered from the wreck.

The Jervis Bay Maritime Museum describes the site as a well-known shallow dive in 3–5 m of water, classified as a historic wreck. Expect scattered timbers, fastenings and ballast among rock and sand rather than an intact hull. Its interest is historical and poignant – one of the defining tragedies of this coast. The site lies in the surf zone and needs flat conditions; detailed position information is not published, so local guidance is essential. It is protected under heritage law, and nothing may be disturbed or removed.

Bendalong is about 45 minutes south of Nowra via the Princes Highway and Bendalong Road (or 20 minutes from Sussex Inlet). The wreck lies about 1 mile north of Bendalong in 3–5 m of water; local knowledge is needed to find the site. A memorial and mass grave are at Cudmirrah Fauna Reserve near Sussex Inlet.

Enter from the shore only in very calm seas; small boats can launch at Bendalong's Washerwomans Beach ramp.

An open-coast site in the surf zone north of Bendalong, exposed to swell from the north-east through south-east. Only diveable in flat conditions (swell under about 0.5–1 m) with offshore westerly winds; visibility drops quickly with any swell or after rain. North-easterly sea breezes build on summer afternoons, so mornings are best, and the coastline here has few sheltered exits.

In flat conditions, locate the site with local guidance and swim a slow search pattern over the 3–5 m bottom, looking for timbers, fastenings and ballast among the rocks and sand.

Protected historic shipwreck (Underwater Cultural Heritage Act 2018).

No regular operator; local divers and heritage groups.