Police were called to Jack Evans Boat Harbour about 6.15am after a local resident saw a body in the water.
They removed the body of a man believed to be aged in his 60s from the water.
A witness told 9News that the man was wearing flippers and diving gear.
It is understood the man may have drowned some time last night.
Police are still investigating the timeline of events, and are preparing a report for the coroner.
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