Halibut Cove is located on the east shore of Kachemak Bay, 7 miles southeast of Homer, and is accessible only by plane or boat.
The bay was named Halibut Cove by W.H. Dall of the U.S. Coast & Geodetic Survey in 1880. Between 1911 and 1928, Halibut Cove had 42 herring salteries and a population of about 1,000.
Today, the community of Halibut Cove is made up of self-employed artists, commercial fishermen and craftsmen. There is a post office in Halibut Cove, but there are no state schools, banks, grocery stores or similar services available. Overnight accommodations available at local lodges, cabins and bed-and-breakfasts. There is one restaurant, the Saltry; reservations are required. There are also no roads in Halibut Cove: homes and businesses are connected by boardwalk.