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Louth Bay (formerly Laurence) is a town and locality in the Australian state of South Australia. It is named after the bay named by Matthew Flinders on 26 February 1802 which itself is derived from a place in Lincolnshire. At the 2006 census, Louth Bay had a population of 408.A town was surveyed in March 1909 and proclaimed on 24 June 1909. It was named 'Laurence’ after Laurence O'Loughlin, a South Australian politician. In November 1940, the District Council of Lincoln formally endorsed a recommendation to rename the town ‘Louth Bay’ in order to be in line with common use. The name change was gazetted on 20 February 1941. Boundaries were created in October 2003 for a locality with the name ‘Louth Bay and which included the site of Government Town of Louth Bay.Aquaculture is an important industry for Louth Bay, though fishermen and local residents are concerned about stock escapees and pollution impacts from existing operations. Concerns included algal growth and seagrass degradation, plastic pollution and the loss of amenity.Louth Island is a large privately owned island located within Louth Bay. 3km to the south east of Louth Island lies the smaller Rabbit Island, which is part of the Lincoln National Park.