Koala Bay is a residential development located near the shores of Tanilba Bay and adjacent to the Tillegerry Habitat, a conservation area home to a population of koalas which is a popular attraction for people wanting to spot a koala in their natural habitat.

Koala Bay has a network of linked open spaces ranging from bushland boardwalks, active parks and open kickabout areas. A feature of the development is the indigenous art trail linking the parks that is informed by local stories and landscapes created by a local Worimi artist.