Anyone see a croc? When fishing in the red rock and white sand, of Bathurst Island you always have to be on the lookout for salt water crocodiles. The Tiwi Islands are part of the Northern Territory of Australia, 80 km to the north of Darwin where the Arafura Sea joins the Timor Sea. They are inhabited by the Tiwi people, as they have been since before European settlement in Australia. The Tiwi are an Indigenous Australian people, culturally and linguistically distinct from those of Arnhem Land on the mainland just across the water. Tiwi Islands, Northern Territory, Australia.