Water Island is a minor island in the United States Virgin Islands, an American territory located in the Caribbean Sea. The rest of the U.S. Virgin Islands were acquired by the Americans in 1917 from Denmark; however, Water Island was excluded, thus the Danish East Asiatic Company, and by proxy the Danish kingdom, continued to own Water Island until several decades later. Water Island was bought by the U.S. Government in 1944, and in 1996 it was transferred to the U.S. Virgin Islands.