Oban is the principal settlement on Stewart Island / Rakiura, the southernmost inhabited island of the New Zealand archipelago. Oban is located on Halfmoon Bay (sometimes used as an alternative name for the town), on Paterson Inlet. It has aircraft connections with Invercargill and a ferry service to Bluff.

The settlement was named after Oban in Scotland,^[3] (An t-Òban in Scottish Gaelic, meaning The Little Bay), due to the strong influence Scottish settlers had in the south of early colonial New Zealand.

The island has received a moderate boost of commerce and some millions in government funding since tourism increased markedly after the opening of the Rakiura National Park.^[4]

It is possible to see kākā during the day and kiwi during the night in Oban.^[5] Efforts have been made to eradicate many of the introduced predators of native birds in Oban, such as stoats and domestic cats, with bigger plans to target possums, three species of rat, as well as hedgehogs.^[6][7][8]

Oban is described by Statistics New Zealand as a rural settlement. It covers 2.59 km² (1.00 sq mi),^[1] and had an estimated population of 330 as of June 2023,^[2] with a population density of 127 people per km². It is part of the wider Stewart Island statistical area.^[9]

Oban had a population of 300 at the 2018 New Zealand census, an increase of 27 people (9.9%) since the 2013 census, and an increase of 9 people (3.1%) since the 2006 census. There were 165 households, comprising 156 males and 144 females, giving a sex ratio of 1.08 males per female, with 33 people (11.0%) aged under 15 years, 51 (17.0%) aged 15 to 29, 144 (48.0%) aged 30 to 64, and 69 (23.0%) aged 65 or older.

Ethnicities were 92.0% European/Pākehā, 19.0% Māori, 1.0% Pasifika, 1.0% Asian, and 1.0% other ethnicities. People may identify with more than one ethnicity.

Although some people chose not to answer the census's question about religious affiliation, 65.0% had no religion, 26.0% were Christian, 1.0% were Buddhist and 3.0% had other religions.

Of those at least 15 years old, 66 (24.7%) people had a bachelor's or higher degree, and 45 (16.9%) people had no formal qualifications. 39 people (14.6%) earned over $70,000 compared to 17.2% nationally. The employment status of those at least 15 was that 150 (56.2%) people were employed full-time, 42 (15.7%) were part-time, and 3 (1.1%) were unemployed.^[10]

The Köppen-Geiger climate classification system classifies its climate as a mid-latitude oceanic (Cfb).^[11] Temperatures are mild to cool year-round, with average high temperatures ranging from 17.2 °C (63.0 °F) in January, the warmest month, to 9.9 °C (49.8 °F) in July, the coolest month. The strong oceanic influence here results in small temperature variations. The diurnal temperature variation is quite low, around 7–8 °C (13–14 °F) yearlong, and seasonal temperature variation (the difference between the warmest and coldest months) is about 7 °C (13 °F). Precipitation averages 1,490 mm (58.65 in) per year, and is evenly distributed across the year (see climate chart). Year-round, Oban lies in the direct path of mid-latitude cyclones (low-pressure systems, or depressions) arriving from the Southern Ocean, generally moving from southwest to northeast, or west to east. As such, the climate is predominantly windy, cloudy and rainy; clear days and days with calm to minimal wind are rare.

The Rakiura Museum was first opened in 1960 in a converted house. It was reopened in December 2020 in a purpose-built $3 million building in December 2020. it contains artifacts and displays including the history of whaling and sealing around Stewart Island, boat building, Maori settlement and natural history of Stewart Island.^[13][14]

Halfmoon Bay School / Te Kura o Rakiura caters for years 1 to 8^[15] with a roll of 38 students as of February 2024.^[16] The school was established in 1874.^[17]