Stansbury is approximately 25 kilometres to the south-east of Minlaton, on the coast. It was originally called 'Oyster Bay' by the first settlers because of the large number of oysters to be found in the bay, which (similar to Port Vincent’s bay) is protected by a sand spit running in a north-easterly direction from the end of the foreshore caravan park.
The town was proclaimed in July 1873 and a few years later the jetty was built in 1877. It is the largest coastal town south of Ardrossan, due to the nearby Klein's Point Limestone Quarry, where limestone is quarried, crushed, then transferred by a motor barge to the Cement Works at Birkenhead (Port Adelaide) five days a week.
The town has a good selection of retail businesses, along with a large caravan park and numerous holiday rental cottages. Tourism has increased at Stansbury since the Seaside Markets along the foreshore became a regular monthly event through the warmer months.