[8] It was laid out and renamed Nassau in 1695 by Nicholas Trott, the most successful Lord Proprietor, in honour of the Prince of Orange-Nassau who became William III of England.

It is also home to more than 400 banks and trust companies, and its hotels and port account for more than two-thirds of the four million-plus tourists who visit The Bahamas annually.

In February 1776, American Esek Hopkins led a squadron of over seven ships to raid the British-held island in order to secure supplies and munitions.

In an event known as the Battle of Nassau, on March 3 and 4, Hopkins landed the first-ever amphibious assault by American military forces consisting of 250 Marines and sailors.

After the American Revolution, several thousand Loyalists and their slaves emigrated to New Providence and nearby islands, hoping to re-establish plantation agriculture.

Salt raking continued here and there, wreck gleaning was profitable in Grand Bahama, but New Providence was the only island with any prosperity because of the large British military establishment.

Testimonials by residents and visitors emphasized its extremely mild climate with minimal daily temperature fluctuations (often as little as 3 °C (5 °F) in any given 12-hour period) and warm winters (a typical winter morning in the range of 21 to 23 °C (70 to 74 °F), excellent drainage, ample variety and number of Christian (Protestant) churches, well-tended and rectilinear roads, modern luxurious facilities, and native English speakers.

Steam ships plied between the coastal southern United States, Cuba, and Nassau, and the popularity of the destination proceeded to grow.

[14] By the late 1920s, New Providence had become well-established especially as an American vacation destination with many tourist facilities, including a deepened harbour for short-visit cruise ship visitors and hotels offering gambling.