The entrance into Melbourne's Port Phillip bay between Point Nepean and Point Lonsdale is one of the most dangerous passages of water in the world. The distance between the two headlands is a little over a mile, with reefs that project from either side leaving only a small navigable channel for boats to pass through.

The Wreck Bell was established by the Ports and Harbors Branch to summon the crew of the Queenscliff lifeboat located a short distance away at the Queenscliff pier. There they could launch a craft in the event of a maritime disaster.

The bell was cast by John Danks & Son, Melbourne in 1891 along with the supporting wooden structure. It was erected close to the residences of the local fishermen, who generally formed the crew of the lifeboat.

The last time the Wreck Bell was used was in 1974 when the rescue crew was called out to a fire on the vessel Brisbane Trader.