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The quay is so named because the Ribble was diverted to its present course to enable the building of the nearby Preston Docks (Albert Edward Dock), construction of which began in 1884 and was completed in 1892. In the intervening years, goods were loaded and unloaded at New Diversion Quay, which is located on the north bank of the new river channel.

The diverted stretch of the river runs approximately from the Guildway Bridge, downstream to Penwortham Marsh. The original course ran to the north of the docks where the A583 Riversway road runs today.

The original course of the river, the outline of the new dock and the proposed diversion are shown on "Brown's 1889 Map of Preston and Neighbourhood", which can be seen on Flickr Link .