In 1789, soon after the arrival of the First Fleet in Sydney, Governor Arthur Phillip declared this bay a neutral harbour where foreign ships could anchor and take on water and supplies.

[4] Neutral Bay was far enough away from Sydney Cove to discourage convicts from escaping on these vessels and to keep possible enemy ships at a distance from the main settlement.

[5] By the beginning of the 20th century, Neutral Bay and Cremorne were developing as "alternative society suburbs", populated by the kind of people who were attracted to the Arts and Crafts architectural style that was in vogue at the time.

Brent Knowle, in Shellcove Road (now part of Kurraba Point), was designed by Bertrand James Waterhouse and built in 1914.

Designed by Peddle and Thorp and built in 1918, it made great use of natural stones and pebbles to achieve the desired look.

More Waterhouse designs appeared in Shellcove Road in the vicinity of The Cobbles and Brent Knowle (now in Kurraba Point).

Neutral Bay was the location of the Royal Australian Navy's Submarine Service HMAS Platypus (naval base) between 18 August 1967 and 29 March 1999.

Keolis Downer Northern Beaches' North Sydney Bus Depot is located behind the Big Bear.

The Warringah Freeway runs along the western border of Neutral Bay, providing links south to the Sydney CBD and north to Chatswood.