I was at Hood Canal a couple of months ago. The year before, our group had stayed at Mike and Shirley's rental and they had told us "fine to dive Octopus Hole". But this time, I had called Shirley and since we were not part of a group, it would have been too much to rent the entire house, so we went to Mike's Beach Resort (this is a different "Mike", for those that don't know) and rented a room. When driving past Octopus Hole we saw big new signs that said "No Trespassing!!!" So we turned around and asked at the local dive shop, Hood Sport 'n Dive. They said that no one could close off Octopus Hole because it was in the public waterway and only the highway department could keep you from parking there - and they hadn't. They said everyone was still diving there, even that morning "such and such" had gone diving there. So we went diving there. A couple of days later I got a hold of Shirley (Mike's gone a lot), and stopped by. She told us that Octopus Hole is closed. They had found out that their liability insurance that they had been paying on for so many years would not cover "commercial", which they were told they were if they let their customers use Octopus Hole - so it is closed.
In the meantime, people keep diving Octopus Hole. When we are up there next time (after checking at Hood Sport 'n Dive), we will probably also dive it. Because we have been told - Parking is on the public highway and the public right-a-way goes right down to the waterline and nobody (everyone) owns the water - so people are going diving there. I guess if someone gets injured and decides to go for the deep pockets - they'll be suing the State of Washington. Actually - don't sue - it's the lawyers (fear of) who are shutting down these places to us!!!!
Obviously, I'm not recommending anyone trespass, dive, or not dive Octopus Hole. I'm just telling what I heard. It's a great wall to dive - lings, octopus, beautiful sea anomie, wolf eels, and gigantic rockfish.