The South Australian Company established its colony at Kingscote at Reeves Point on 27 July 1836, as South Australia's first official European settlement, the first settlers having arrived on the Duke of York,[9] and named for Henry Robert Kingscote, one of the founding directors of the company.

It was early suggested that Kingscote could serve as the capital of South Australia, but the island's resources were insufficient to support such a large community; the South Australian Company moved almost six months later to Adelaide after sending surveyors to find a better site.

Joyce Debenham Seager arrived here as the only doctor on the island in 1925 and she established the first temporary hospital travelling by horse to visit patients.

It is the administrative centre for the Kangaroo Island Council, whose offices have recently undergone a significant upgrade.

Recreational facilities include a sports centre and adjoining oval and netball courts.

The Aurora Ozone Seafront Hotel, with its mermaid statue, is a well-known landmark on the Kingscote foreshore.

[28] A subscription list was started and maintained to update local residents on fundraising progress[27] and matching funding was offered by the South Australian Tourist Bureau.

[45] The species did not appear in the list of birds observed at Busby Islet Conservation Park (part of The Spit) which was published in 1987.

[46] The colonies at Busby and Beatrice Islets became extinct after introduced African boxthorn vegetation was removed.

[37] Kingscote experiences a warm-summer mediterranean climate (Köppen climate classification: Csb), Trewartha: Csbl); with warm, dry summers; mild, relatively dry springs and autumns; and mild winters with moderate precipitation.