The bay forms the mouth of the Clyde River and its primary outflow is to the Tasman Sea of the South Pacific Ocean.

Batemans Bay is fed by the Clyde River and its tributaries, drawing its catchment from the eastern slopes of the Budawang Range and the Great Dividing Range from within the Budawang, Clyde River, Bimberamala, and Monga national parks.

[3][4] Cullendulla Creek also flows into Batemans Bay, between the townships of Surfside and Longbeach, west of Square Head.

The traditional custodians of the land surrounding Batemans Bay are the Indigenous Australian Yuin people of the Walbunja clan.

[5] On 22 April 1770, European explorer, Captain James Cook first sighted the bay when navigating his way around Australia on his ship, HMS Endeavour.