A post office was established in 1892. In the early 1900s, canneries were constructed by the Alaska Packers Association. Over fishing of the area forced the canneries to close in the late 1930s. After a severe storm in January 1978, the village council decided to relocate the community to the present site, upstream on the south side of the lagoon. HUD constructed 23 houses at the new community location.
Fish processing is the primary source of livelihood.
The village corporation shares ownership of a cannery with the corporations of Larsen Bay and Old Harbor, but operations have remained idle in recent years. Residents actively participate in subsistence hunting and fishing activities. Salmon, trout, ducks, seals and deer are harvested. Only mean of transportation is by airplane or boat. There is both a State owned 2,000' gravel airstrip and a seaplane base at Karluk Lake.