An estimated 350 people braved the rain at St Stephen's Newtown on August 20 to remember one of Australia's worst maritime disasters.

However the weather held off long enough for a wreath-laying ceremony attended by Governor of NSW, Professor Marie Bashir in the cemetery on the church grounds.

When the Dunbar " commonly known as Australia's Titanic " sank as it tried to enter Sydney Harbour 150 years ago, only one of its 122 passengers survived.

The cemetery on the church grounds contains the tombstones of those who died, including a mass grave for the many victims whose bodies were unable to be identified.

Victims of the Catherine Adamson, which sank just nine weeks later, are also interred in the grave.

St Stephen's' rector, the Rev Peter Rodgers, says the day brought home the horror of the tragedy, which rocked the young city of Sydney as whole families were lost, including young children.

"Looking back at this tragedy and thinking of the modern tragedies as well reminds us that life is very fragile and our hope has to be found in God," says Mr Rodgers.

Mr Rodgers estimates that 75 per cent of those who attended were visitors interested in the history of the event.

"We're surprised at how much this event still resonates with people today," he says.

"It happened right on our doorstep " because we can visualise the crash and the bodies washed up on the shoreline, it's quite close to us still."

Bells tolled for each of the victims as their names were read out.

Visitors heard verses read from a Bible that was recovered from the wreck, and were able to see other artefacts from the ship on display, some of which were donated by St John's Darlinghurst.

Senior curator of the National Maritime Museum, Kieran Hosty also launched a book on the Dunbar at the event, and the Shipshape Theatre Company performed a folk opera based on the Dunbar story.

The day was a significant one for the parish says Mr Rodgers.

"We want to be active in helping preserve the social history connected with the graveyard, and to build contacts with the community through that."