Geography played a part in Bahamian history. In 1492, when Christopher Columbus made his first landfall in the New World on the island of San Salvador in the eastern Bahamas, he observed the shallow sea around the islands and referred to it as "baja mar" (low water or sea). Than definition effectively named the area The Bahamas, or The Islands of the Shallow Sea.

Because the island was located close to Florida, the Islands of the Bahamas caught the attention of explorers, settlers, invaders and traders who shaped the colorful history of The Bahamas.

Piracy was at its height from the late 1600s to the early 1700s. The Islands of the Bahamas was a popular "stopping off" point for many of the world's most infamous pirates.

The tourism industry began in the mid-19th century with government support for the construction of hotels and subsidized steamship service. Tourism once again blossomed in the 1920s when Prohibition brought well-to-do American tourists to the islands. After the repeal of Prohibition, the Islands of the Bahamas went into an economic slump that lasted until the 1940s and World War II, when it served as an air and sea way-station in the Atlantic. Construction of the base brought jobs to many people.

Further changes came in 1961, when Cuba was closed to American tourists.

Capitalizing on its close proximity to the United States, the government of the Islands of the Bahamas set out to increase the number of people who visited it each year and took action to grow. It dredged Nassau's harbor to accommodate up to six cruise ships at a time and then built a bridge connecting Nassau to Paradise Island.