Water Island
Water Island is the smallest of the four Virgin Islands with a population of 161 residents. Water Islands is only 2 ½ miles long and ½ mile wide. The island gets its name from the numerous fresh water ponds that were once found there. In 1905, Joseph Daniel’s heirs sold Water Island to the Danish East Asiatic Company for $21,000. In 1917, the United States bought the Danish West Indies (St. Thomas, St. Croix and St. John) from Denmark but Water Island continued to be owned by the East Asiatic Company.
In 1944, the United States acquired Water Island for $10,000. They immediately began construction of a defense installation called Fort Segarra, which was intended to protect military installations on neighboring islands. In 1950, the Department of Defense turned Water Island over to the Department of Interior who then leased it to a private developer by the name of Walter Phillips at a cost of $3,000 annually for 20 years. Mr. Phillips constructed a hotel and homes. In 1965, Walter Phillip sold the master lease for Water Island to Water Isle Hotel and Beach Club in 1965 under the ownership of Edward McArdle. McArdle expanded the hotel and built and sold some private homes. The lease was renewed in 1972 for another 20 years. In 1989, Hurricane Hugo severely damaged the hotel and subsequently closed.
Water Island was transferred by the federal government to the USVI territorial government on December 12, 1996; making it the 4th member of the United States Virgin Islands. The island remains largely un-commercialized. Water Island offers visitors a superb opportunity to relax away from everything and enjoy a restful vacation. There are no airports on the island, but an airport is located just a mile away. There is daily ferry service to and from Water Island. The island does not have taxis, public buses, gas stations, hotels or rental cars. It is a residential island that offers true peace and quiet.