in the early days of european settlement george hunter was the chief proprietor of the island bay estate, where he bred stock on his stud farm. the island bay portion was subdivided and auctioned in march 1879. in the late 19th century, island bay was settled by italian and shetlander fishermen. in 1905, wellington's tramline was extended to island bay, increasing the area's popularity, and steadily transforming it into a seaside suburb. many island bay villas, bungalows and shops date from the 1920s, a period of rapid development for the area. this included the subdivision of the island bay racecourse which was once bounded by clyde street on the east and ribble street on the west. many streets in island bay were named after british and european rivers.