Sheet Harbour was founded in 1784, by Loyalist refugees and British veterans of the American Revolution. In 1863, a large saw mill was built on the coast of the East River. Initially, Sheet Harbour powered the mill with a water wheel. Sheet Harbour was originally known as Port North, on the Royal Navy Chart, published in 1778. Port North was later deemed to be too vague, so the name was changed to Sheet Harbour, named after a flat, white rock that looks like a sheet. Today, Sheet Harbour banks on tourism, fishing and still forestry.

Located southwest of Sheet Harbour, Taylor Head Provincial Park is rugged, yet scenic terrain, known as a home to geographical formations and unique finds. Hiking trails are available to the public, with spectacular viewpoints. The Bay of Islands Centre is 50 acres of farm and wood land, as camping, hiking, folk arts events and sustainable living workshops are available for those interested in the outdoors. Sheet Harbour is located 117 km (72.7 mi.) from Halifax.

Sheet Harbour accommodations include bed and breakfasts, hotels and motels.