The bay itself was originally the easterly entrance to Coney Island Creek but filling of the central part of this waterway during the 1930s in conjunction with construction of the Shore Parkway portion of the Belt Parkway eliminated access to the creek. At the same time the bay was widened at its western end, deepened and bulkheaded. It is now the home of recreational fishing fleets. At the Western end of the bay, there is a Holocaust memorial park, which is used throughout the year for commemorative events.

In the last decade of the 20th century, a real estate boom brought the reopening of the landmark Lundy Brothers seafood restaurant, which closed again in 2007, as well as the opening of Russian-themed restaurant/nightclubs such as Paradise and Baku Palace. The waterfront also experienced a growth of condominium developments. Emmons Avenue, the northern shoreline street along the bay, has piers with an active seafood market and tour boats.

Sheepshead Bay is named for the sheepshead, an edible fish once found in the bay's waters. Local lore alternately asserts that Sheepshead Bay was named for its shape, which was thought to resemble the head of a sheep.

Community and location

Subway service to Sheepshead Bay is provided by the BMT Brighton Line (B and Q trains), with local stops at Avenue U and Neck Road, and an express-local stop at the Sheepshead Bay Road station. Emmons Avenue is at the west end of a shore bikeway, lying between Shore Parkway and Jamaica Bay, connecting east and north to Canarsie and Cross Bay Boulevard.

Located within the community are several public schools: Sheepshead Bay High School; JHS 14 Shell Bank Intermediate School; Bay Academy, I.S. 98; and P.S. 52 (elementary).

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