Little Bay was founded in the summer of 1878 by Baron Franz von Ellershausen, a German industrialist, after the accidental discovery of a copper ore deposit by a local hunter named Robert Colbourne.

Little Bay mine was among the top copper producers in the world and referred to as "the gem of the island" and "the el Dorado of Newfoundland" in media coverage from the era.

The mining town attracted both local and international media attention as a result and plans were made to connect Little Bay to St. John's by railroad.

[1] Historic Little Bay could boast several late 19th century luxuries such as a telegraph office, hospital, public hall, court house, hotel, advanced industrial wharfage, and a regionally competitive cricket team.

[2] During its boom years Little Bay hosted several notable visitors including Lurana W. Sheldon, Gustav Kobbé, William Kennedy, John McDonald, James Patrick Howley, Wilfred Grenfell, John Hawley Glover, Henry Arthur Blake, Terence O’Brien, and even Prince George although the last didn't make shore and remained in Little Bay's harbour onboard HMS Canada.