A highly ranked beach, Caroline Bay is extremely popular with locals and tourists alike. The beach is sheltered by the harbour breakwater and is the only sandy beach between Oamaru and Banks Peninsula. Allied with the popular swimming beach is the annual summer carnival run by the voluntary Caroline Bay Association. The carnival has been operating for over a hundred years and draws people from around much of New Zealand to attend or assist with its operation. The carnival is a traditional family affair with free concerts, rides and sideshow style games.