Narooma is a town in the Australian state of New South Wales on the far south coast. The town is on the Princes Highway. The name is said to be derived from the Aboriginal word meaning ‘clear blue waters’.
Montague Island, a National Parks and Wildlife Reserve, is eight kilometers offshore from Narooma. The island was sighted off the coast by Captain Cook in 1770.
Narooma is located on the Narooma Terrane which used to be separated by thousands of kilometers from the Australian coast. It traveled to the west and attached itself to the side of the Lachlan Fold Belt which became part of Australia. The rock found near Narooma includes the Narooma Chert dating from Cambrian times, and turbidites. There is also the remains of an submarine volcano with pillow lava.