The island is of volcanic origin and lies to the south of Saint Thomas in the Charlotte Amalie harbor.

The main attractions are beaches, including Honeymoon Beach, plantation ruins, Fort Segarra, an underground fort partially constructed by the U.S. during World War II, and scuba diving site Supermarket Reef in Limestone Bay.

The U.S. believed that the company acted as a front for Germany and sought to establish a German naval base and commercial presence on Saint Thomas.

In the late 1990s, the Department of the Interior began transferring Water Island land to the long-time residential leaseholders.

The trees and brush were removed, 200 truck loads of rock and gravel were hauled off, and the beach stone was broken up with a bulldozer.

The name was changed to "Sugar Bird" and later to "The Sea Cliff Hotel" and met its demise when Hurricane Hugo hit.

In addition, some barracks, watch towers, ammunition bunkers were also created near Carolina Point as well as an infrastructure of docks, roads, water, sewage and power systems.

[7] Gun emplacements, tunnels and underground rooms which were created during the World War II building efforts are still visible.

The area is monitored by the United States Army Corps of Engineers and soil samples are monitored from the former chemical test sites to ensure "that no residual contamination remains from previous Department of Defense activities.

The ferry takes passengers to Phillips Landing where golf carts are available to rent for exploring the island.