Three people, clinging to the hull of an upturned boat, were rescued in waters near Bawley Point on the south coast late on Saturday afternoon.

NSW Police say officers, water police and members of the Volunteer Rescue Association, Surf Life Saving and the Westpac Rescue Helicopter came to the rescue.

All three, who were wearing lifejackets, were winched to safety.

Arrangements are underway to salvage the vessel.

Chief Inspector David Cockram, from the South Coast Police District, praised the efforts of rescuers in what was a challenging multi-agency rescue.

“Had the three people on board the vessel not been wearing life jackets, we could easily have seen a different outcome and a tragedy unfold,” he said.

“It serves as a timely reminder that people should take all safety precautions when launching into the water, to observe the prevailing conditions and ensure all people on board are wearing life jackets.”

Water Police will investigate the circumstances of the incident.