It is situated on the Royal River, around 0.5 miles (0.80 km) southeast of the town center, in an area known as Lower Falls.

Vessels were being built by 1740, and by 1818 shipbuilding in the area was in full swing, though Yarmouth's industry peaked in the 1870s, and declined rapidly shortly thereafter.

Today, you’ll see a view of I-295 and glimpses of modern marinas and boatyards, so imagine for a moment a 19th century perspective on the scene: major shipyards ringing the harbor with workers, building materials, and shops adding to the industrious atmosphere.Interstate 295 was built through the harbor in 1961 (spanning part of the town known as Grantville across to the promontory between Route 88 and Old Shipyard Road, behind 35 East Main Street).

[4] The late-18th-century and early-19th-century homes of several shipwrights and sea captains who worked out of the harbor are still standing in the area,[5] predominantly on Pleasant Street.

[5] The office of the harbormaster is situated at the southern end of Old Shipyard Road, at the town landing and boat launch, also on the northern side of the river.