Crab Claw Island, on the way to Dundee Beach from Darwin, is surrounded by 2500km2 of pristine waterways which include Bynoe Harbour, salt water estuaries and fresh water creeks and rivers. A peninsula jutting out into Bynoe Harbour, it becomes an island at very high tides only.

Bynoe Harbour hosts some of the best fishing grounds in the Northern Territory. Five islands are nestled in the mouth of the Harbour and the harbour coastline is made up of mangroves, fringing and sub tidal reefs, sandy beaches, seagrass and mud flat/sand flat habitats. An artificial reef constructed from the former Crab Claw Resort Jetty that was damaged severely by a cyclone and subsequently demolished is now home to huge Jewfish, this is accessible by small boats. Other activities catered for by the island's resort are mud crabbing, boating, bird watching, photography, bush walking and generally relaxing.

The resort at Crab Claw Island has 12 elevated beach-front cabins that overlook the resort's pristine white sandy beach. These cabins share a balcony with the cabin next door and are fitted with a double and two single beds, a small refrigerator, air-conditioner, ceiling fan and en-suite bathroom.