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It was created by Van Hallen for their album cover and brought back in time by Bill and Ted on their most excellent adventure to some old diver dude up in Michigan who loved it so much he hung it off his boat.
But seriously...Dive Flags will sum it up.
Now, what about the Alpha Flag?
There is a lot of dispute about the origin of the red and white dive flag, which is of relatively recent origin and is not recognized everywhere.
The alpha flag is a more traditionally recognized flag that says that the boat has limited ability to move (and thus avoid a collision) because it is conducting some kind of underwater operation. That operation may or may not include divers.
It goes on to say that a boat with divers attached to the boat should fly the Alpha flag, but with divers down which are not tethered to the boat should not fly the Alpha flag since they have the ability to manuver."Eighth Coast Guard District Special Notice to Mariners". 2008. p. 23. Retrieved 2 February 2010. "The distinction the Coast Guard wants to make clear is: The Alpha flag is a navigational signal intended to protect the vessel from collision. The sports diver flag is an unofficial signal that, through custom, has come to be used to protect the diver in the water."