Shad Bay is situated south of Halifax and is also a member of the County of Halifax. Shad Bay was first settled in 1764 by the Marlow family, after they had received a 1000 acre grant. This grant was later divided into four quarters in the 1800s. The town name (given in 1764) is derived from the Shad fish, which was once in abundance. Prior to 1764, the land was known as Shag Bay. Like many of the smaller towns surrounding Halifax, Shad Bay residents mostly commute to the big city for employment, although fishing is a minor industry here. Shad Bay is specifically 25.4 km (15.8 mi.) driving distance to Halifax.

Shad Bay is especially close to Coolen's Beach, which is a great place to go for a swim or even a boat ride. Sea Kayaking tours are offered at Shad Bay, which vary in length from a day long to two weeks long. The longer tours will include hiking, canoeing and visiting other areas of the province. Shad Bay is home to the Holy Cross Cemetery, which provides insight into the local genealogy. Shad Bay is positioned on the scenic Lighthouse Route and is just minutes from the ocean.

Shad Bay accommodations include beautiful inns.