The kibbutz was established in 1939 by members of the
Gordonia youth movement, and served as a base for the
Palyam. Nearby is a
geyser that is activated when the sea is stormy. The kibbutz has fallen into financial difficulties and is attempting a rejuvenation project by attracting twenty-seven families from
Elei Sinai,
Dugit, and
Nisanit, who had been evicted from the northern
Gaza Strip as part of the
Israel's unilateral disengagement plan of 2005 and allotting them land adjacent to the sea for permanent housing. The new project would give the evictees a housing solution similar to their original homes. The
Israel Union for Environmental Defense is struggling to prevent the project, which it deems is too close to the beach. File:עתלית - נוה ים, קבוצת גורדוניה בעתלית-JNF033668.jpeg|Neve Yam 1939 File:נוה ים - מראה-JNF026120.jpeg|Neve Yam 1947 ==Notable people==