The Ottoman Shipyard is estimated to have been established in 1775. According to a document found in the archives, the construction of the first ship started in 1784. The wood for these boats was brought in from the mountains in the local vicinity. The Ottoman Tower, fortified against pirate attacks and the walls of the shipyard were extended in 1882. The tower serves today as an Art Gallery.
Today, behind the old shipyard there is an Ottoman Cemetery with the tombs of the Ottoman sailor Cafer Pasha and an anonymous horseman.
At the present time, the wooden boats built in small-scale shipyards at many locations of the Bodrum peninsula have become passion of local and foreign marine lovers.
The Ottoman shipyard is located at the northwest of the Bodrum Harbour and Karaada ( Black Island) is located at the west of the Marina.