The bay was originally named “Port Townshend” by Captain George Vancouver (for his friend the Marquis of Townshend) in 1792. It was immediately recognized as a good safe harbor, although strong south winds and poor holding ground often make small craft anchorage problematic off the town’s waterfront.
The official European-American settlement of the city of the same name took place on the 24th of April, 1851. American Indian tribes located in what is now Jefferson County in the mid-19th century included the Chimakum (or Chemakum), Hoh (a group of the Quileute), Klallam (or Clallam), Quinault and Twana (the Kilcid band — Anglicized: Quilcene).
Port Townsend is also called the “City of Dreams” because of the early speculation that the city would be the largest harbor on the west coast of the United States.