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Portland Head Light, Maine, William Aiken Walker. Casco Bay is an inlet of the Gulf of Maine on the coast of Maine in the United States.The National Oceanic and Atmospheric Administration's chart for Casco Bay marks the dividing line between the bay and the Gulf of Maine as running from Bald Head on Cape Small in Phippsburg west-southwest to Dyer Point in Cape Elizabeth.
The United States would gain fishing rights off the Atlantic coast of Canada, and agreed to allow British merchants and Loyalists to try to recover their property. It was a highly favourable treaty for the United States, and deliberately so from the British point of view.