Carey's Bay was named after David Carey, one of Otago's early settlers and entrepreneurs. Coming from Sussex, he originally settled in Waikouaiti before moving to Ōtākou in 1843 and then to Carey's Bay in 1850. The settlement of Carey's Bay was, however, originally known as Mansford Town, with the Carey's Bay Hotel (built in 1874 and then named The Crescent Family Hotel) being built by the then Mayor of Port Chalmers, Henry Dench, from gold money. The settlement was a thriving spot back then and today is a popular place to visit; also housing a small marina.