The need for a lighthouse at the entrance of Jackson Bay was made evident by the loss of two ships. First was the "Dunbar", wrecked in August 1857, with the loss of 121 lives. The second was "Catherine Adamson", two months later in October 1857, with a loss of twenty-one lives. The first signal station was operated close to the present site in 1790, serving as a landmark for ships to communicate their arrival to the settlement. A committee of the Light, Pilot and Navigation Board took evidence in September 1857 and recommended the construction of a lighthouse on the inner South Head, showing a fixed white light (F.W.), although a red light was also considered.