The bay is located approximately 10 km (6.2 mi) west of Dili, the capital city of East Timor,[1]: 9  and immediately to the northwest of the similarly named suco of Tibar [de], which is part of the Liquiçá municipality.

It drains into the bay's southern side via defined watercourses and, in large storm events, across a delta (located behind the main highway).

[3]: 2, 8  The report of another survey, carried out in 2017, stated that the dominant species in the area was Sonneratia albia, and that there were some clusters of Rhizophora apiculata, Ceriops tagal, and Lumnitzera.

Livestock were eating seeds, aerial roots and young plants, and there was also intensive use of mangrove trees, including as firewood, by local villagers.

[1]: 11 The report of the 2013 survey observed that the bay has complex bathymetry providing diverse benthic habitat, as it is sheltered and receives nutrients from runoff from the nearby land.

The site therefore qualified as critical habitat, following the International Finance Corporation (IFC) Performance Standard 6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources).

The bay is the only part of its section of coast providing a sheltered anchorage for vessels relatively close to valuable deep water fishing grounds.

The report of the survey noted that there was potentially also a ninth, submerged, site on the bay's southeastern side that may have been an historic stone jetty.

[1]: 12 Other traditional economic activities in and around the bay consist of grazing (cattle, goats and pigs), harvesting of mangrove and mesquites, collection of crustaceans, algae and molluscs for human consumption, fish farming in man-made fish ponds, salt production in salt pans, and the growing of cassava, maize, or mixed vegetables.

[1]: 9 [3]: 2, 8, 12–14, 26 Additionally, an extensive band of Avicennia marina landward of the main Sonneratia alba stand appears to have been cleared, for fish ponds, salt pans and firewood.

[1]: 9 In June 2016, the government of East Timor signed an agreement with the Bolloré Group to build and operate a new container port at Tibar Bay.

In the catchment south of the bay are a water treatment plant and waste dump, as well as schools, a technical training centre, a health clinic and a police post.