Although initially intended for Western Bay Head, an Iron tower built in 1893 was instead diverted to Bacalhao Island. The Island, not to be confused with Baccalieu Island or the phantom Bacalao Island, is situated in Notre Dame Bay and North Northwest of Herring Neck. It would have presented itself as a hazard to shipping in the area, especially due to the fact that it is positioned between Twillingate, Change, and Fogo Island. The word Bacalhao derives from the Portuguese spelling for Cod, “Bacalhau”.

The tower is painted in a distinctive red and white spiral pattern, much akin to the structure at Heart’s Content. The keeper's dwelling was situated closeby, and was connected to the tower by a covered passage to protect the lighthouse keeper in poor weather. The original dwelling was replaced in the 1960s, and a fog horn was also added due to repeated requests from shipping companies. The tower exhibits a flashing white light every 10 seconds, at a focal height of 108 metres, out to a range of 17 nautical miles.