Paterson Inlet is a large natural harbour in the eastern coast of Stewart Island/Rakiura, New Zealand, much of which is unspoilt forest. This region was first inhabited by the Māori, who settled at a locale known as The Neck, which is a long peninsula that extends across the mouth of the inlet from the southern coast. The only town on Stewart Island, Oban is located on the north coast of the inlet, close to its mouth. In earlier times, the inlet was used as a base for whaling. Southern right whales were the main target in this area and over exploited. However, their sightings around the island are increasing recently.