New York Bay. New York Bay is the collective term for the marine areas surrounding the river mouth of the Hudson River into the Atlantic Ocean, in New Jersey and New York City. Its two largest components, which are connected by The Narrows, are: Upper New York Bay. Lower New York Bay. The term New York Harbor usually refers to the Upper New York Bay and Port of New York and New Jersey, but sometimes is taken to be a synonym of New York Bay. To the south of Manhattan are several islands in the New York Bay: Liberty Island, where the Statue of Liberty is; Ellis Island; and Governor's Island. The East Shore of Staten Island also borders New York Bay. Except for Staten Island, the only way to get to any of these islands is by ferry. The first European discovery of the area was by Giovanni da Verrazzano in 1524.