Calcareous deposits were formed on steel under conditions of cathodic protection in artificial seawater at applied constant current densities ranging from 50 to 400 mA·m−2. The calcareous layers were characterized using a Field Emission Gun Scanning Electron Microscope (FEG SEM) in conjunction with Energy Dispersive X-Ray Analysis (EDX), and Electrochemical Impedance Spectroscopy (EIS). At cathodic current densities of 50–100 mA·m−2 where corrosion was still occurring, a clear correlation existed between the iron containing corrosion product and the overlying magnesium hydroxide layer. This revealed that the mapping of magnesium rich areas on a steel surface can be used in the identification of local corrosion sites. At current densities of 150–200 mA·m−2, a layered deposit was shown to occur consisting of an inner magnesium-containing layer and an outer calcium-containing layer. At current densities of 300–400 mA·m−2, intense hydrogen bubbling through macroscopic pores in the deposits gave rise to cracking of the deposited film. Under such conditions deposits do not have a well-defined double layer structure. There is also preferential formation of magnesium-rich compounds near the steel surface at the early stages of polarisation and within the developing pores and cracks of calcareous deposits later on. Based on SEM/EDX investigation of calcareous depositions the impedance model was proposed and used to monitor in situ variations in steel corrosion resistance, and to calculate the thickness of formed deposits using the length of oxygen diffusion paths.