The name 'Shoalwater' was used by the original settlers on the basis of the shallow waters in the area.[3]
Sport
Shoalwater is the home of the Shoalwater Bay Cricket Club who play in the Peel Cricket Association. The "seals" have senior teams in A, B, C, D, E and F Grade and junior teams in U/17's, U/15's, U/14's. U/13's, U/12's, U/11's and U/10's. They play at Stan Twight Reserve on Hennessy Way, Rockingham and are a feeder club to the Rockingham-Mandurah District Cricket Club who play in the WACA District competition and to the Peel Representative sides that compete in several Country weeks that are played throughout the season against other country representative sides.