The locality is about 26 kilometres (16 mi) south of the town of Huonville.

The 2021 census recorded a population of 194 for the locality of Petcheys Bay.

It is believed to be named for William Petchey, an early settler in the area.

[2] The waters of the Huon River estuary form the southern boundary.

[3] Route C639 (Cygnet Coast Road) runs through from south-west to south-east.