[3][4] Lihue is in the ancient district of Puna, the southeastern coast of the island, and the land division (ahupuaʻa) of Kalapaki.

Early investors were Henry A. Peirce, Charles Reed Bishop and William Little Lee.

The plantation struggled until William Harrison Rice built the first irrigation system in 1856.

[7] Subsequent plantation owner Paul Isenberg helped German people emigrate to Lihue starting in 1881, with the first Lutheran church in Hawaii founded in 1883.

By the 1930s, George Norton Wilcox became one of the largest sugarcane plantation owners, buying Grove Farm from Hermann A.

[9] The Wilcox family home, Kilohana, has been converted into a restaurant and gift shop.

The grounds are also the site of luaus, many of which are offshore excursions booked through NCL America.

[10] Lihue is on the eastern side of the island of Kauai, bordered by Hanamaulu to the north and Puhi to the west.

Hawaii Route 50 leads west from Lihue 12 miles (19 km) to Kalaheo and beyond to the western side of the island, while Hawaii Route 56 leads north 7 miles (11 km) to Kapaa and onwards to the northern side of the island.

[17] Kauai's main seaport is at Nāwiliwili Bay, directly southeast of town.

Lihue is home to Kauai Community College, part of the University of Hawaii system.