The pilot had decided to discontinue the flight due to deteriorating weather conditions. As he was approaching Port Douglas the visibility decreased to the extent that he was unable to maintain visual contact with the coastline. The pilot said that he decreased power to reduce forward speed in an attempt to maintain visual contact, and shortly after this he felt a bump and directional control was lost. The aircraft landed in about 1.5 metres of water some 600 metres from the shoreline. Damage to the tailrotor blades and gearbox, which had separated from the aircraft, indicated that the tailrotor had struck the water before separation.