The Sydney suburb of Collaroy and its beach were named after the dramatic stranding of a paddle steamer there in 1881. The wreck of the Collaroy lay ashore for a number of years until salvaged in 1884. It was a remarkable sight, the large 54.86 metre iron vessel lying on the southern end of the beach. The Collaroy had been on its usual passage from Newcastle to Sydney when it ran ashore in thick fog about 4.00 a.m. on 20 January 1881. Captain Thomson and the mate were discussing what looked like the Long Reef headland ahead, when waves were sighted on the land-ward side. Before the vessel could be slowed, the steamer ran ashore.
The ship's lifeboats landed all 40 aboard, the women and children carried through the breakers. During attempts to place anchors off shore to steady the vessel, one of the boats was destroyed and a crew member drowned. Four tugs were sent from Sydney and Newcastle, some with salvage gear including spare anchors and chain but the Collaroy held fast high on the beach.
The Collaroy was built in 1853 at Liverpool, United Kingdom. In 2001, the NSW Heritage Office located one of the Admiralty-pattern mooring anchors offshore, used to stabilise the stranded vessel. In 2002, its search team led by Maritime Archaeologist Tim Smith, located another larger anchor of the Lt Rodgers Small Palm type. This anchor and associated chain is thought to have been one of two located in 1963 by local diver John Whiteman, and photographed by Ben Cropp.