This conservancy is located on the west side of Gil Island along Squally Channel. MacDonald Bay is a snug, sheltered anchorage that is ideally situated for small boats heading for the outer coast, and is a registered boat haven.
It consists of a narrow river-like entrance channel that opens into two small bays. Local boaters and fishermen commonly stop and anchor up in the bay overnight. Fresh water can be obtained from streams that enter into the bay.