Located on Forestier Peninsula facing Norfolk Bay, Flinders Bay (8 km north west of Eaglehawk Neck) was once the site of a convict Probation Station which was established in 1841. Probation Stations at Salt Water River, Slopen Island and Impression Bay probation stations also opened that year. At that time, the Government stated no more convict assignments to settlers would be made; instead the Probation System was activated, whereby convicts were divided into gangs and sent to work in the under developed areas of the Colony.

Gangs of 250 to 300 men would have light to heavy labour, graded according to prisoner diligence and conduct. The gangs would build their own accommodation and then be employed on public works at stations. Tasmania, with over half its land mass covered in trees, still has timber as one of its primary resources. It is often quoted that Melbourne was built with Tasmanian timber first developed by the penal system.

Probationary periods: 7-10 year sentence: 2 years' probation; 14-20 year sentence - 3 years; life sentence - 4 years. With good behaviour at the completion of the probationary period, a convict received a probation pass, then a ticket-of-leave, later graduating finally to a conditional or absolute pardon.

The 200 convicts at the Flinders Bay Probation Station were involved in timber getting and land clearing. The station, beside the mouth of Flinders Creek, was short lived and closed within several years of establishment. The convicts were transferred to Port Arthur.

Flinders Bay Beach

Flinders Bay is a V-shaped bay that narrows to the mouth of Flinders Creek. Westerly wind waves blowing into the creek mouth have produced a 100 m long high tide beach immediately south of the mouth of Flinders Creek, fronted by ridged sand flats that widen at the creek mouth. The entire bay is bordered by tree-covered slopes. A vehicle track from the highway terminates at the beach where there are some buildings associated an oyster farm in the bay.