"Otway" was laid down by Scotts Shipbuilding and Engineering Company at Greenock, Scotland on 29 June 1965, The submarine was launched on 29 November 1966 by Princess Marina: the first RAN submarine and second RAN vessel after the cruiser to be launched by a member of the Royal Family. In January 1968, RAN personnel sent to Scotland to train before the submarine was completed provided assistance to residents whose houses were destroyed in a storm. "Otway" was commissioned into the RAN on 23 April 1968.