Nishinoshima was part of ancient Oki Province, and is the location of a number of Shinto shrines dating to the early Heian period.

[1] Nishinoshima, along with Ama and Okinoshima Town claim to be the location of the home-in-exile for ex-emperors Go-Toba and Go-Daigo.

The two municipalities were divided by a canal in 1915, which cut the island into two parts.

Nishinoshima's traditional performance art Shūhairā was designated as an Important Intangible Folk Cultural Property by the Japanese government.

[3] The town economy is primarily based on agriculture and commercial fishing.