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Island Bay is a coastal suburb of Wellington, the capital of New Zealand, situated 5 km (3.1 mi) south of the city centre.
Island Bay lies on the bay which shares its name, one of numerous small bays off Cook Strait and west of Lyall Bay. 500m offshore in Island Bay lies Tapu Te Ranga Island, which forms a natural breakwater and provides a sheltered anchorage for local fishing boats.