With thanks to @Joseph O'Rourke and @goleta who gave me the clues I will post a solution to my own question. I will use the nomenclature for the points provided by @Aaron Meyerowitz.
Construct a triangle $OPQ$ with the given side $PQ$ such that it is similar to the reflection of the given triangle $ABC$ i.e. $\angle OPQ$ = $\angle ABC$ and $\angle OQP$ = $\angle ACB$.
Draw the circumscribed circle of triangle $OPQ$. Because $\angle POQ$ = $\angle CAB$ = $\angle PAQ$ it follows that $A$ must also lie on this circle (angles subtended from points on a circle by a chord of that circle are equal)
Also, $\angle OAP$ = $\angle OQP$ = $\angle ACB$, therefore $OA$ is parallel to $CB$. Therefore the distance $OY$ from the point $O$ to the side $BC$ is equal to the distance $r$ from the point $A$ to the side $BC$ and this is the fixed height of the triangle. Therefore the side $BC$ is tangent to the circle with centre $O$ and radius $r$ and the envelope of the edge must be an arc of that circle.
If anyone knows a prior proof of this please comment so that I can cite it.