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Raymond Terrace is a town in the Hunter Region of New South Wales, Australia, about 26 km (16 mi) by road north of Newcastle on the Pacific Highway. Established in 1837 it is situated at the confluence of the Hunter and Williams rivers. At the 2011 census Raymond Terrace had a population of 12,725. It is the administrative centre of the Port Stephens local government area as well as a service hub for surrounding rural areas. Raymond Terrace is situated entirely to the east of the Hunter and Williams rivers and consists of three distinct regions. The north and south regions are primarily rural/semi-rural and occupy approximately 74% of the town's land with only 3% of the population living in these areas. Most of the population lives in the town itself.