THREE people were rescued from their sinking boat off Cape Peron this morning.

Water police received information from the Rescue Coordination Centre in Canberra that an EPIRB distress beacon was activated just over 20 nautical miles west of Cape Peron, near Rockingham, at about 8.30am.

The Surf Life Saving helicopter was sent to search the location and a message was sent out on Marine VHF radio asking boats in the area to help with the search.

A fishing boat about 10 minutes away  found the sinking 5.5m open boat with three people on board at about 8.50am.

The fishing boat stayed until a rescue boat from Rockingham Volunteer Marine Rescue Group arrived and towed the boat back to shore at about 9.20am.