The Ordnance owned some land further up the Haven from Milford at a place called Paterchurch Point. This site was inspected by William Stone, who was the Master Shipwright at the Milford Dockyard, in the early part of 1810. Stone found that the site was well suited to shipbuilding, being flat and sheltered as well as next to a stretch of deep water. After a more formal inspection the land was transferred from the Ordnance and the Navy Board set to work on a 20 acre site to build a new Dockyard. The Officers appointed to the Dockyard at this time were housed in an old frigate called the Lapwing, which had been dragged ashore for the purpose. Work began on the first ships, with many of the workers coming from Milford and having to row themselves up the Haven to work each day. This marked the beginning of what would become the town of Pembroke Dock, a town which grew around and because of the existence of the Dockyard.

A view of Pembroke Dock today, looking out from the Defensible Barracks.