The community of Balsam Bay lies slightly south of Grand Beach. The recorded history of the community reaches back to 1884, when a local cemetery became the official free burial grounds to anyone living in the communities of Stony Point, Beaconia, and Balsam Bay.
The community post office opened for business on 1 November 1887, and the Balsam Bay Church emerged around 1920 ~ its name became St. Luke’s. Balsam Bay is currently home to eight cottage subdivisions and is growing rapidly.