Located near the town of Green Head, Anchorage Bay is the site of the Green Head jetty, and the main place of anchorage for the area's fishing vessels. The beach is 2.2km long, with the jetty and boats located toward the southern end. There are reefs and plenty of sea grass in the waters of Anchorage Bay, with vehicle access at each end of the beach. The bay is part of the Three Bays Walkway, which takes you along the coast past the bays of South Bay, Dynamite Bay and Anchorage Bay.

Anchorage Bay played a significant role in the region's crayfishing (rock lobster) history, with fishermen moving to the area in the 1950s to seek out the coveted marine creature. The export of catches was initially very difficult, with the only route to Perth being a sandy inland track.

In the late 1950s, an airstrip was built, with rock lobsters being flown directly from Green Head to Perth. Cray season used to run from mid-November to mid-August - however, the last crayboat sailed out of Anchorage Bay in 2018. There is still a booming rock lobster industry operating largely out of Cervantes and Geraldton.