Here are the lyrics form the Folk-Legacy songbook, Time and the Flying Snow: Songs of Gordon Bok. The lyrics are just slightly different from what's in the Digital Tradition. The book spells the bay "Dillan," but doesn't tell where the bay is.

DILLAN BAY
(Gordon Bok)

Dillan Bay, laddie-o
Dillan-dau, laddie-ay
Dillan Bay, laddie-o
All the boats are gone

Gone away, laddie-o
Gone awa', laddie-ay
Gone away, laddie-o
With their topsails high

Topsail high, laddie-o
Topsail low, laddie-ay
Topsail high, laddie-o
When the wind's away

Wind's away, laddie-o
Wind's awa', laddie-ay
Wind's away, laddie-o
Down in Dillan Bay

Dillan Bay, laddie-o
Dillan-dau, laddie-ay
Dillan Bay, laddie-o
All the boats are gone

recorded by Gordon Bok
Copyright Folk Legacy Records, 1977
@sailor
filename[ DILLBAY
TUNE FILE: DILLBAY
CLICK TO PLAY
SOF

The book and the DT don't go right out and say it, but it appears to me that Gordon Bok is the songwriter.
-Joe-