Two paddlers have spoken out about their fear as a "yelling man" came towards them with a knife at Horseshoe beach.
Mat Egan and Mark Breasley, members of Cooks Hill Surf Life Saving Club (SLSC), told the Newcastle Herald they were forced to retreat into waist-deep water as a man threatened them on Wednesday afternoon.
The pair joined a push for improved safety in the Horseshoe beach area in the wake of the incident.
"We should all be able to go down to the beach and have fun," Mr Egan said.
"It's not great, it's sketchy."
The men said they had been paddling on Newcastle Harbour before making their way up the sand with their skis towards a bush pathway that leads to boat sheds.
They said they heard a man yelling and went to walk past him, but he started coming towards them. Mr Egan then turned to his mate and said: "Get back, he's got a knife".
The pair said they walked backwards into the water to escape and the man followed, before going towards two other people on the beach, then yelled obscenities as he left.
Police were called and attended the scene. Mr Egan and Mr Breasley were preparing to provide formal statements to police on Friday afternoon.
Mr Egan said the first thing any lifesaver takes into consideration is safety. He said members of multiple clubs, of all ages, train at the harbour and use the bush pathway.
Mr Breasley said he felt genuine fear at the time. No one was physically injured.
"Normally we would have kids with us, and they shouldn't have to see anything like that," he said.
"I've never been threatened with a knife [before] and never want to be again."
The day after the incident, Cooks Hill SLSC president Michael Clancy wrote to Newcastle lord mayor Gavin Morris and Newcastle MP Tim Crakanthorp.
The beach, car park and nearby foreshore have been plagued by controversies about safety, long-term campers, the cleanliness of the site, confusion about who has responsibility for it and complex issues like homelessness.
Mr Clancy called for NSW Police, the state government, support services and council to work together to review the situation at Horseshoe beach and determine "practical measures" that could keep the area safe and accessible.
Mr Crakanthorp said he had spoken with police, who said they would patrol the area and work with agencies to do whatever they could to keep it safe.
Police have previously told the Newcastle Herald they had spoken with owners of unregistered vehicles at Horseshoe beach and provided information about support services.
City of Newcastle has previously said it has no enforcement powers at Horseshoe beach.