Southwest Harbor, in the town of Southwest Harbor, is a large cove indenting the southeast side of Mount Desert Island at Clark Point, about 13 miles southwest of Bar Harbor. Lying at the entrance to Somes Sound, which bisects the southern half of the island, Southwest Harbor is a boatbuilding center and is used by fishing and large recreational fleets. A U.S. Coast Guard base is located on Clark Point.

Completed in 1962, the project provides for two adjoining anchorage areas of about five acres each on the north side of the harbor near the wharves, west of Clark Point. The outer anchorage is 10 feet deep, and the inner anchorage, near Tracy Cove, is six feet deep.