Island Beach is a locality in the Australian state of South Australia overlooking Eastern Cove in Nepean Bay on the north-west coast of the Dudley Peninsula on Kangaroo Island about 121 kilometres (75 miles) from the state capital of Adelaide and about 21 kilometres (13 miles) from Penneshaw.

Development stalled for a number of years, due largely to a reluctance of the local council to construct roads through the estate, which under planning regulations of the time were not the responsibility of the developer.

[citation needed] In the late 1970s a separate land subdivision occurred to the south of the original estate.

Throughout the late 1980s and beyond, development accelerated with substantial seafront residences being erected, and land values beginning to rise.

[citation needed] Island Beach is located within the federal division of Mayo, the state electoral district of Mawson and the local government area of the Kangaroo Island Council.