Stanegarth was built in 1910 as a steam-powered tugboat by Lytham Ship Builders Company for service with the British Waterways Board. She was converted to diesel power in 1957. The tug used to tow three dredging hoppers, each crewed by two men, on the trip to and from Gloucester to Purton.
On 6 June 2000 she was scuttled at Stoney Cove to produce an artificial reef suitable for wreck diving. The wreck now sits in 20 metres (66 ft) of fresh water and measures more than 18 metres (59 ft) long with a beam of 5 metres (16 ft). A plaque attached to it reads "Stanegarth project by Stoney Cove and Diver Magazine June 2008".