The Gaol (pronounced just like "Jail") was established in 1876 as an experimental Public Works Gaol. The intention was to have the inmates construct a breakwater which would shelter the notoriously difficult to navigate Trial Bay. The whole project had to be abandoned by 1903 with only 300 of the planned 1500 meters break wall completed. Mostly due to severe storm damage and not enough governmental funding.
(tee hee; John Howard)
Absolutely stunning views; you can see what's little left of the breakwater.
During World War 1 from 1915-1918 the Gaol was given a new lease on life as a German internment camp.