The shire of Sutherland suburb of Gray's Point is splendidly positioned upon a Port Hacking headland, at its confluence with the Port Hacking River. This waterside aspect is enhanced by the natural beauty of the Royal National Park, which constitutes the suburb's southern border. The National Park was bequeathed "to the people of this state" as a "domain for rest and recreation" in 1879. Being only the second national reserve in the world, this was an exceptional display of environmental foresight. During the Australian visit of Her Majesty Queen Elizabeth II in 1954, the 5,069 hectare National Park was prefixed with Royal, in her honour.

Gray's Point's proximity to this expanse of natural bushland renders it vulnerable to savage bushfires which recur with regularity during this southern continent's dry summer months. The tragedy of such a fire in 1983 was compounded by the deaths of three volunteer bushfire fighters at Gray's Point. More recently the suburb was menaced by the merciless fires of January 1994 which blazed statewide and devastated the Royal National Park.

There is some confusion over the naming of Gray's Point. It is quite possible that the suburb recalls one of its earliest European land owners, Samuel William Gray. However it is equally plausible that John Edward Gray is remembered in Gray's Point. In effect, it honours them both.

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