Peterhead Bay is a large remote industrial tidal 120° facing coastal embayment, located next to the planned community, commercial fishing and ship building town of Peterhead in the Presbytery of Deer, Buchan, Aberdeenshire, and is in the most easternmost point in mainland Scotland.

[5] Keith Inch was formerly an island, originally separated from the mainland and contained of Abbey of Deer.

[6][7] A castle stood on the south side of Keith Inch, built in the 16th century by George Earl Marischal.

A small fort and guardhouse were also built, and contained 7 brass cannon, which were retrieved from the vessel St Michael of the Spanish Armada which foundered and wrecked on the coast, close to the bay.

[8] In 1773, civil engineer John Smeaton built the south harbour,[7] which was originally called Sackit-hive.

On 11 October 2010, construction began on a new deep water harbour, in a £33.5 million pound project, called Smith Quay[11] In November 2015, a £49 million pound project was undertaken to build a new large state of the art fish market and inner harbour reconstruction.

At the beginning of King William's War in 1688, a French privateer of 24 guns, opened fire on the harbour and town, causing considerable damage to the town and harbour, including blowing off the pocket of a woman from her side, while she was standing in her own shop door.

After being assisted by the people of Peterhead by using small arms fire, the privateer was forced to withdraw.

[13] A later attack occurred when two privateers, shott [lowered] their longboats with an intent to sack the town, but the fort's 18-pounders were used to drive them off.

The townspeople decided to load their biggest 18-pounder gun with an extraordinary charge of powder and fired on the ship, forcing her to withdraw with some damage, which was attested by one Patrick Cruickshank, a Peterhead man, who was being ransomed aboard the vessel at the time.

Ships were later built for export of fish, butter, cheese, grain, and non-consumables such as granite.

[21] Gray was a keen amateur zoologist who made some important contributions to Arctic biology, giving an account of whale behaviour and history that were reported by the Zoological Society of London.

By 1973, a large investment was made to improve the harbour facilities and to facilitate the building of a gas and oil terminal.

[24] Peterhead Bay Harbour comprises the deep water inlet, and is specifically used for the oil and gas industry.

[24] The harbour has two massive breakwaters, enclosing an area of approximately 300 acres in Peterhead bay.