Waterloo Bay's north wall is one of the eastern Prom's best dives and one that Scuba Doctor says you can do several times and never get tired of. The bay – named by Captain Stokes of HMS Beagle, who arrived on the anniversary of the battle in 1842 – is the last big bay before South East Point, and its northern arm is a granite headland whose face continues underwater as a 2 km wall running from the point towards North Waterloo Bay beach. The wall is built of granite boulders up to 10 m high, stacked to form swim-throughs, caves and overhangs, and it drops from about 10 m at its top to 60 m at its deepest off the point, with most of the interest between 15 and 30 m.

The shallows carry kelp and the fish of the inshore reef – wrasse, leatherjackets, cuttlefish, draughtboard sharks resting in the gaps and blue devils in the holes – while the deeper zones near the walls hold clouds of barber perch and boarfish, and the rock is coated with yellow zoanthids, sponges, sea whips and nudibranchs of many kinds. Seals from the eastern haul-outs are occasional visitors. The additional interest zones around and north of the point mentioned in the listing extend the site into a whole day's diving: a wall dive on the point at slack, a boulder-garden dive further in, and a shallow kelp dive near the beach.

Bare Back Cove, 1.2 km north-north-east, and Waterloo Point, the bay's south-eastern headland, are the neighbouring sites. Access is the usual eastern Prom proposition – a long run from Port Welshpool in settled weather, no facilities, and self-sufficiency – and the bay is dived rarely as a result, but it offers an unusual combination of length, variety and depth range that lets a mixed group of Advanced and deep divers work the same wall at their own levels.

Boat only. Launch at Port Welshpool (sealed all-tide ramp, jetty and trailer parking on Corner Inlet, 2.5 hours from Melbourne) and run south through Corner Inlet's marked channels and out past Rabbit Island down the eastern Prom coast – about 30–40 km and 60–90 minutes to Sealers/Refuge Cove, longer to Waterloo Bay and South East Point. The coast is exposed to easterly and southerly swell and has no facilities; carry fuel, radio and all air, and plan around the weather window and Corner Inlet tides.

Waterloo Bay is about 38 km from Port Welshpool, beyond Refuge Cove and Bare Back Cove. Anchor in sand off the wall inside the point in 15–20 m; the headland is current-affected, so dive at slack.

Best with calm seas, no swell and no wind; light offshore northerly to north-easterly winds acceptable, strong onshore westerly to south-easterly winds not. Optimal at slack water because of currents around the headland. The bay opens south-east and picks up any southerly swell.

Late summer and autumn are the season for the long run from Port Welshpool.

Descend the anchor to the base of the wall at 15–20 m and work along it towards the point or towards the beach, threading the swim-throughs and overhangs among the 10 m boulders; drop to 30 m on the outer section only if planned, since the wall continues to 60 m. Turn at half gas, return along the wall at a shallower depth and finish under the boat with a safety stop.

Outer wall to 60 m suits technical divers; recreational floor 30 m.

No dive charter operates at Wilsons Promontory. Sites are dived from club and private trailer boats – Dive La Trobe, VSAG, Melbourne University Underwater Club and Dive Victoria Group run occasional camping-and-diving trips – launching at Tidal River (beach launch, permit/key from Parks Victoria), Port Welshpool or Sandy Point. Wilsons Promontory Cruises (Port Welshpool) runs sightseeing cruises to Skull Rock and the islands but no diving.