At the time of the US purchase of the Danish West Indies in 1917, the colony did not include Water Island, which had been sold by Denmark to the East Asiatic Company, a private shipping company, in 1905. The company eventually sold the island to the United States in 1944, during the German occupation of Denmark. The federal government then used the island for military purposes until 1950, before finally transferring it to the territorial government in 1996.
