Stenhouse Bay is a place in the Australian state of South Australia near the south-west extremity of the Yorke Peninsula located in the gazetted locality of Inneston about 156 kilometres (97 mi) west of the state capital of Adelaide.

[6] Its official status as of 2013 is that of a 'locality unbounded' which is listed on the South Australian place name gazetteer with the advice that it is "not to be used as an address".

The quality of the gypsum in this area was exceptionally high class and most of Australia's needs were supplied from here.

The Waratah Gypsum Company closed its works and the town was sold to the South Australian Government which demolished the town except for the few houses required for the rangers of the National Parks and Wildlife Organization who look after Innes National Park.

The iconic trading post and tavern was closed and fenced off just before the peak Christmas period.