Island Beach is a locality in the Australian state of South Australia overlooking Eastern Cove in Nepean Bay on the north-west coast of the Dudley Peninsula on Kangaroo Island about 121 kilometres (75 mi) from the state capital of Adelaide and about 21 kilometres (13 mi) from Penneshaw.
John Stewart Browne subdivided Island Beach in 1961 into 254 allotments, with average block sizes exceeding 1,000 square metres (11,000 sq ft). Development stalled for a number of years, due largely to a reluctance of the local council to construct roads through the estate, which under planning regulations of the time were not the responsibility of the developer.
In the late 1970s a separate land subdivision occurred to the south of the original estate. Known locally as Carter's Estate, these allotments were more traditionally under 1,000 square metres (11,000 sq ft) in size. Throughout the late 1980s and beyond, development accelerated with substantial seafront residences being erected, and land values beginning to rise.
Facilities at Island Beach include a general store and fuel station.There is limited access to the beach for boat launching and retrieval.
Island Beach is located within the federal division of Mayo, the state electoral district of Finniss and the local government area of the Kangaroo Island Council.