Prior to 1971, the ferry services on the Manly–Circular Quay route were operated by the Port Jackson & Manly Steamship Company.

Patronage was approaching all-time lows, but the growth prospect for ferry services was considered strong.

The four ferries were all ageing and expensive to maintain, and it soon became evident that Brambles intended to close the service or sell the ships to the State Government at the earliest opportunity.

Public outrage and fears that the service would be suspended entirely led to the government resuming responsibility for the operation of the ferries in February 1974.

The decision to modify the two Lady-class vessels proved fortuitous; as both the North Head and the Baragoola had to be sent for major overhauls, and the smaller ferries acted as relief ships while these works were carried out.

During the naming ceremony for the Lady Northcott on 11 February 1975, then Liberal Minister for Transport Wal Fife announced that two new ferries would be introduced to the Manly service within three years.

The study recommended the selection of the twin-hull due to the higher service frequency achievable (due to the twin-hull's faster speed of 18 knots, 33 km/h, 21 mph versus 14.5 knots, 26.9 km/h, 16.7 mph), however the study noted that other than this, there was relatively little difference between the options.

Burness Corlett were confident that the twin-hull option was the superior choice, due to service speed and stability through Sydney Heads, and so no model tests were performed for the monohull design.

However, the modified Lady-class ships were not good substitutes for the two older vessels, as the newer Lady ferries were too small and too slow for the Manly service.

This provided a fresh political impetus for the State Labor administration to order the new Manly ferries.

Her last arrival into Circular Quay involved a ceremonious horn battle between Collaroy and the other vessels before she dropped off her final load and returned to Balmain.

Narrabeen was intended to come back to service in 2022 after an engine rebuild, but was cancelled due to cost and time over runs.

The three-month old ferry ran aground at Manly Cove in March 1983 after overshooting the wharf following a computer failure.

[9] On 30 March 1985, Freshwater was hijacked by a man who threatened to shoot passengers unless the captain piloted the ferry beyond Sydney Heads into the ocean.

It turned out that the man, a New Zealander, had not been carrying a gun, but an empty vodka bottle (the second of two that he had consumed before boarding the vessel) concealed under his jacket.

After a short jail sentence, the man returned to New Zealand in January 1986 by stowing away on the Oriana, for which he was also fined.

[6] However, in 2023 after the 2023 New South Wales state election the current plan is to maintain this vessel, along with at two of her sisters, in full time service.

[13] However, on 13 June 2022 it was announced that the Queenscliff will be brought back in to service, after a refit, to replace the Collaroy due to steering problems.

[6] After belated completion of a previously routine five yearly dry docking, the vessel reentered service on Monday 27 November 2023.

[citation needed] However, after much delay it was announced that the Narrabeen's engine rebuild was cancelled due to supply chain issues and expenses and the vessel was officially retired.

However, after the 2023 New South Wales state election new Transport minister Jo Haylen announced the return of 'Narrabeen.

Collaroy differed from her classmates in having been equipped with underwater stabilisers, enhanced radar for use on ocean cruises, a reversed funnel, a "Becker" style rudder, different wheelhouse windows, and thicker hull plating, which altogether makes her the heaviest of the Freshwater-class ferries.

In February 2001, Collaroy ran aground on Manly Point, putting the ferry out of service for several months and costing $2 million to repair.