Due to its southerly location and the moderating effect of Lake Erie, it has a slightly milder climate than inland areas. Its climate is one of the mildest in Canada, and the island has long been used for vineyards and wine making. The wine industry was started here in 1860 and died out in the early twentieth century, but was restarted in the 1980s. The island is an agricultural based community which grows about 2,000 hectares (5,000 acres) of soybeans, about 400 hectares (1,000 acres) of wheat, 200 hectares (500 acres) of grapes, and a few hectares of specialty corn.

This area had long been inhabited by indigenous peoples. After the American Revolutionary War, the United States mounted the Northwest Indian War to push Native American peoples out of what it then called the Northwest - the area of the Midwest south of the Great Lakes and west of the Appalachian Mountains.

Avoca, The first settler arrived around 1794. At that time, the area was home to the Seneca Indians. The town was formed from parts of four other towns in 1843: Bath, Cohocton, Howard, and Wheeler.