Near the old vegetable garden, on the outskirts of Yarrabah, is a beautiful hollow with a swim hole called Reeves Creek. Children swim and play there, in the lush grass, under huge shady trees. There, amongst the canopy of eucalypt, fig, melaleuca, lawyer cane and pandanus are ghost stories about children whose playful voices and laughter can be heard echoing through the forest in the very early morning and late afternoon when the sun is below the hills. Kutjiarr (children) appear beneath a massive fig tree with eerie glowing dormitory nightshirts and shimmering faces in the moonlight.
There is speculation that the children may have died in the fire when the dormitory burned down in the 1930s or that they may have drowned in nearby Reeves Creek when in flood. Some say the children appear to be waiting for something or someone.