Originally named Sturgeon, the boat was launched on 15 June 1911 by the Fore River Shipyard, Quincy, Massachusetts; sponsored by Ms. Margaret Nelson Little; renamed E-2 on 17 November 1911; and commissioned on 14 February 1912.

[1] Serving in the Atlantic Submarine Flotilla, E-2 sailed out of Newport, Rhode Island for developmental exercises and training.

She returned to Naval Station Newport on 27 July, for training operations for the remainder of the summer and from February–May 1915 off Florida.

[1] At the time, E-2 was the test submarine for new nickel battery designed to eliminate the danger from chlorine gas asphyxiation.

There were 32 men aboard the submarine at the time of the explosion, consisting of both crew and civilian electricians and mechanics making repairs.