Until the early 19th century, New Quay consisted of a few thatched cottages surrounded by agricultural land, the natural harbour providing a safe mooring for fishing boats and a few small trading vessels. The New Quay Harbour Act was passed in 1834 and a stone pier was constructed at a cost of £4,700. Trading activity increased and new houses were built as economic migrants arrived. Shipbuilding began to take place and the town increased in size with the construction of terraced housing up the slopes of the sheltered bay.