Baileys Harbor is a town in Door County, Wisconsin, United States. The population was 1,003 at the 2000 census. The unincorporated community of Peninsula Center is located in the town. The census-designated place of Baileys Harbor is also located with the town. The town was named for a Great Lakes ship captain named Bailey who was caught in an unexpected severe storm in 1848 and found shelter in the harbor. The area was formerly known as Gibraltar.