The area now known as American River was first visited by Europeans in 1802 when Matthew Flinders landed to survey this part of Kangaroo Island. In 1803, a group of American sealers camped for four months in the area. They arrived on the brig and built their own 35 ton schooner "Independence" from local timber. The town takes its name from this time. A memorial plaque and accompanying anchor (recovered in 1969) from an early American whaling vessel is dedicated to "Union" s crew.