Geophysical data from Conception Bay and the adjacent peninsulas of the Avalon Peninsula, Newfoundland are presented and quantitatively interpreted using two-dimensional models to interpret the geology beneath the bay. The portion of the bay underlain by mafic volcanic rocks is determined and the maximum extent of the Cambro-Ordovician rocks containing the Wabana hematite deposit is delineated. All gravity and magnetic anomalies in the area are explained in terms of density and magnetic susceptibility variations confined to the upper 12 km of the crust. The geophysical models indicate that mafic volcanics underlie a significant portion of the study area and are more extensive than indicated by the surface outcrop on land. The models also indicate significant vertical movement on the Topsail Fault and on the extension of a fault passing out into the bay near Holyrood. The Cambro-Ordovician sediments are confined to the southern portion of the block bounded by these faults. The geophysical data are unable to detect the presence of the mafic volcanics east of the Topsail Fault in the study area.