On a Sunday in March 2009, a group of Dive 2000 club members went for a dive before lunch at Bare Island in Botany Bay.
The vis was not great, but after about 15mins searching Dave managed to find the hiding spot of the the elusive Pygmy Pipehorse.  Sydney's Pygmy Pipehorse is about 5cm long and known from the Sydney region and Jervis Bay in New South Wales. It is found on semi-exposed red algae covered rocky reefs in coastal marine waters of 6 m to 30 m depth. For more info http://www.amonline.net.au/fishes/fishfacts/fish/ilumnitzeri.htm

After looking at our pipefish most of us continued the dive but Peter and Kathy Cave stayed a bit longer to take some images and video and...it was at that point the pipefish trembled a bit, leaned back, and GAVE BIRTH to some miniscule bits of fluff that are actually baby pipehorses - amazing!

Check out the 13 secs of video by Kathy below...unfortunately the quality is not great but you can just see the babies floating away on the current and if you listen carefully you can hear Peter's amazement.