For years the Christine J was used to conduct cruises on the Shoalhaven River.
In February this year, the wooden boat sank for the second time in as many months.
For the past six months it has sat stranded on the bottom of the Shoalhaven River, east of the bridges.
On Friday after months of negotiations, the boat was finally removed from the water.
Johnson Commercial Diving Services from Port Kembla and WGC Cranes of Wollongong combined to recover the the 30-tonne vessel.
A large crowd was on hand to watch a 300-tonne crane lift the vessel onto the northern bank of the Shoalhaven River at Greys Beach.
An excavator with a wooden grab arm was then used to demolish the historic vessel.
The parts were then trucked away for disposal.