There is reputed to be an entry in Domesday Book – the first recorded reference to Coatham as "there is a Hamlet of Cotes (one-roomed cottages or shacks) on the beach where the people collect coal from boats from Hartlepool, to carry by pack animal to the Abbey at Guisborough for the heating for the monks there".

Coatham can be traced back to the 12th century, when "Roger son of William de Tocketts gave a salt-pan in 'Cotum' to Guisborough Priory.

It was intended to extend 2,000 feet (600 metres) into the sea, but damage in the building stage from shipping and storms curtailed the distance to 1,800 ft (550 m).

The ship had developed trouble during a storm in the North Sea and despite passing Grimsby, Scarborough and Whitby, she carried on for South Shields.

Residents objected to losing open space to the council's proposed housing and leisure development planned to revive the tourist industry.