It is just one of a few "minor" incidents which occurred on Port Stephens waters so far these holidays, according to Port Stephens water police co-ordinator Tony Hogg.

"It's busy but there hasn't been too many incidents," he said.

"They [boaters] are all being very well behaved."

A witness to the Soldiers Point event, Kye Boyton, said the incident took place on Sunday, December 29 when those in the 4.5 metre boat pulled up to get some fuel and something to eat at Soldiers Point Marina.

The dinghy was unattended for about five to ten minutes.

"During that time it was windy, which caused waves to fill the little boat with water, which then caused the boat to sink," he said.

It was saved only by the rope which tied it to the pier.

Jennifer Busch from the slipway workshop said her husband Greg Busch, the owner and mechanic at the business, used another boat to salvage the dinghy out of the water, until it was able to be flipped.

"It was just swamped by waves," she said.

In light of the incident Mr Hogg said those heading out on the water should always be mindful of safety.

He said life jacket laws could be quite confusing and those in doubt should wear one just in case.

Marine Rescue NSW (MRNSW) volunteers are also on high alert during the holidays ready to assist boaters in need of help on the water.

Commissioner Stacey Tannos said December and January were the busiest months of the year for the volunteer units.

"Many people are on holidays, perhaps in a new boat and on unfamiliar waters, but they can be assured our members are standing by, ready to help when needed," he said.

He urged boaters to always log on with their nearest Marine Rescue unit when heading out.

"Boaters simply radio or phone their nearest MRNSW unit to let them know where they're heading, how many people are on board and when they're due back," he said.

Log onto marinerescuensw.com.au to find out more.