High Quality Content by WIKIPEDIA articles! Stone Harbor is a borough in Cape May County, New Jersey, United States. It is part of the Ocean City Metropolitan Statistical Area. It shares the barrier island Seven Mile Island with its northern neighbor Avalon. Development began in the late 19th century as a beach resort along the West Jersey and Seashore Railroad line which was replaced by a traffic island in 1932 along the length of Second Avenue. It continues as a resort community for visitors enjoying beaches and a thriving commercial center centered along 96th Street and 2nd Avenue, bringing in a summer population in excess of 20,000. As of the 2000 United States Census, the borough had a year-round population of 1,128.