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- There was a town or village at the location earlier than 1883. The Augustine Volcano eruption (50 miles away) of July 6, 1883, that destroyed the summit, apparently created a tsunami that carried away boats and deluged houses.
- In 1786 the bay was named "Grahams Harbour” by Captain Nathaniel Portlock. In 1788 it was named "Cool Bay" by Captain John Meares and the Russians called it “Bukhta Anglitskaya” (“English Bay”) but now this name refers to a small bay around Nanwalek. The bay around the village (locally referred to as Paluwik) is now known as Kachemak Bay.
- The Fidalgo Island Packing Company (pp.28) built a cannery at Port Graham in 1901.
- By 1909 there was a cannery still in operation, wharf, and a post office in operation between 1938 and 1961.
- The Alutiiq (Sugpiaq) is a federally recognized tribe and member of the Chugach Native Association. The area is serviced by the Port Graham Airport.