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Salt Spring Island, was initially inhabited by Salishan peoples of various tribes.

The island became a refuge from racism for African Americans who had resided in California. They left California in 1858 after the state passed discriminatory legislation against blacks. Several of the families settled on this island; others on Vancouver Island.

Before the emigration, Mifflin Wistar Gibbs travelled with two other men up to the colony to interview Governor Sir James Douglas about what kind of treatment they could expect there. The Governor was a Guyanese man of multi-ethnic birth, and assured them that people of African descent in Canada would be fairly treated and that the colony had abolished slavery more than 20 years before.

The island was the first of the Gulf Islands to be settled by non-First Nations people. According to 1988's A Victorian Missionary and Canadian Indian Policy, it was the first agricultural settlement established anywhere in the Colony of Vancouver Island that was not owned by the Hudson's Bay Company or its subsidiary the Pugets Sound Agricultural Company.

Salt Spring Island was the first in the Colony of Vancouver Island and British Columbia to allow settlers to acquire land through pre-emption: settlers could occupy and improve the land before purchase, being permitted to buy it at a cost per acre of one dollar after proving they had done so.

Before 1871 (when the merged Colony of British Columbia joined Canada), all property acquired on Salt Spring Island was purchased in this way; between 1871 and 1881, it was still by far the primary method of land acquisition, accounting for 96% of purchases. As a result, the history of early settlers on Salt Spring Island is unusually detailed.

Fun Fact: Since its’ inception in 2001, Salt Spring Dollars have gained a reputation as one of Canada’s most establised community currency systems. They are accepted by many merchants across Salt Spring Island.