The Steam Packet Inn
was situated on the Eastern corner of Hunter and Newcomen Streets, Newcastle. This was the same allotment or close to that the Australian Inn
was situated on. - See Map of Newcastle
(n.d.) University of Newcastle Living Histories.
Adjoining the Inn was the residence of Thomas Buxton
, and at the rear of those properties was a spring known as the Water Reserve. It was from this spring that the residents of early Newcastle secured their water supply.
Carts and barrels went in from Hunter Street by a narrow lane at the side of Buxton's property and when barrels were filled, continued along the lane and came out in Newcomen Street at the rear of the Steam Packet. 
The Steampacket Inn
Henry Williams held the license in the 1860s. The Hotel was burned to the ground in July 1862 and Henry William's young daughter died in the fire.
In 1891 a Bank occupied this site. - https://livinghistories.newcastle.edu.au/nodes/view/44524
NOTES AND LINKS
Many years later the Council erected Corporation Baths
on the site of the spring.
 Gould, W.J., Newcastle and Hunter District Historical Society Journal and Proceedings, Volume 1 1847
 Maitland Mercury 17 July 1862
 Australian Town & Country Journal 3 September 1881