Located west of Lemon Tree Passage is Tanilba Bay. 'Tanilba' is said to mean 'place of white flowers', presumably a reference to the flannel flowers which formerly thrived in the area. There is plenty to do in this small, picturesque bayside town. You can go on a guided koala walk through the bushland, showing koalas in their natural habitat. Down on the waterfront there are a variety of water sports you can enjoy such as swimming, water skiing and fishing. The centrepiece of this small township is Tanilba House: a beautiful and elegant home which is one of Australia's oldest historical buildings. Tanilba House was built for Lieutenant William Caswell, a naval officer. He and his family emigrated from England in 1828. Caswell established farm sites at Seaham (23 km north) and Salt Ash and opted to build his homestead on the 50 acres he received at Tanilba. Utilising convict labour he started with a slab hut in 1829, expanding to a cottage in 1831, and laid the foundations of Tanilba House in 1837, built of quartz porphyry stone which was quarried nearby. The mortar came from lime produced by burning oysters. Vineyards, gardens and a dairy were established. The growing family were on good terms with the local Aborigines whose children played with their own. However, their numbers soon diminished as they did throughout the colony. The Caswells lived at Tanilba for fifteen years. The family house was sold in 1886 and stood derelict until 1897.
In 1931 Tanilba House was owned by Henry Halloran who designed such structures as "The Temple", which is behind Tanilba House on the road leading to the house, and the elaborate gates at what were then the north and south entrances to the town. Today the town has expanded and the still incomplete gates stand inside the town limits. Rather than being a museum piece Tanilba House, for all of its elegance,
has a very comfortable, casual, rustic and lived-in feel to it. It is now owned by Helen Taylor.