Sawmill Bay State Marine Park is 15 miles from Valdez and three miles west of Valdez Narrows. As one of the most popular anchorages in Valdez Arm, this picturesque bay is surrounded by 4,000-foot peaks, providing a protected anchorage in the southwest arm of the bay. The boreal forest of spruce and hemlock, intermixed with muskeg, dominate the uplands. Land and sea otters, seals, bears, and an assortment of bird life can be seen in the bay.

Camping opportunities include two tent platforms, a fire ring and a bear proof food locker, located to the north of Steller Creek on the west side of the bay. Fresh water can be obtained from Steller Creek and other streams within the bay.