Mr O'Neill dived into the water to try and save his two young sons, Riley, four, and Travis, 15 months, after they fell 5m into the water from Tathra Wharf, at Tathra, near Bega, just after 8pm last night.

Mr O'Neill, who would have turned 29 next Saturday, was fishing off the wharf and had his baby in the pram, with his other child holding onto it, when the pram tumbled into the water.

The panicked father quickly dived in to save his children but all three drowned and were unable to be revived by paramedics.

Senior Sergent Garry Nowlan said the weather had been bad in the area.

``The weather was pretty bad there last night,'' he said.

``The wind was blowing, strong winds, the surf was up ... the sea was very choppy.

``The conditions weren't good.''

He said police were still in the process of taking statements from witnesses, who were ``understandably traumatised''.

A 37-year-old local fisherman who jumped into the water to help was taken to hospital on Tuesday night but discharged early today with ``superficial injuries'', including a few scratches, a spokeswoman for Greater South Area Health Service said.

Tony Brown, a GP and hotel owner from Kalaru, said locals were ``shocked and saddened'' this morning.

A report is being prepared for the coroner.

Anyone who witnessed the incident and has not already spoken with police is urged to contact Batemans Bay Police Station or Crime Stoppers on 1800333000.