St. George's Caye was settled as a town in 1650, and was the largest settlement in what was at the time British Honduras in the 17th century and 18th century, until its importance was eclypsed by the growth of Belize City. From 3 September through 10 September, 1798, the British settlers fought and defeated a small Spanish fleet sent to drive them from the area; this battle is marked as a national holiday in Belize each September 10th as The Battle of St. George's Caye (see also: History of Belize.
As of 2000 St. George's Caye had a permenant population of only about 20 people.