Prior to its founding in 1860 the location of Melinka was known as Puerto Arenas (literally "Port Sand") by whalers who visited the area regularly. Melinka was founded in 1860 by the German immigrant, Felipe Arnold Westhoff. Westhoff had been commissioned to supply railway sleepers to Ferrocarril Central Andino in Peru. At the time the Guaitecas Archipelago was still part of Chiloé Province. In the first years of Melinka a series of indigenous tombs were discovered while building houses. From Melinka Westhoff exported Pilgerodendron uviferum () that made excellent wood for sleepers. In 1870 the port was charted by Enrique Simpson on board Chacabuco.Simpson, E. (1874). Esploraciones hechas por la Corbeta Chacabuco al mando del capitán de fragata don Enrique M. Simpson en los Archipiélagos de Guaitecas, Chonos i Taitao. Santiago. Imprenta Nacional.
