The bay enters the Strait of Juan de Fuca between the Miller and Quimper peninsulas.
Native people – the Klallam (locally: S'Klallam) – have occupied the lands around the Strait of Juan de Fuca for millennia, including locations on Discovery Bay.
The Spanish explorers Manuel Quimper and Gonzalo López de Haro in Princess Royal are the first known Europeans to find and map the bay of Port Discovery.
A landing party put ashore along the west shore of the bay near what is now Contractor's Point to fill water barrels from the creek there.
The abandoned sawmill was a popular sight for tourists and appears in many nostalgic area photographs and paintings.