In the mid 1950s, Lilly began dolphin cognition and communication research, with an intensive period of work through the late 1960s. This period brought many discoveries about dolphin anatomy and brain structure, as well as behavioral and communication observations. Originally researching at Coconut Grove, Florida, Lilly purchased a property in St. Thomas in 1960. The seaside lab was converted into a dolphin-human cohabitation house by purposely flooding part of the building. It was at this facility that Lilly assistant Margaret Howe Lovatt worked with the dolphin Peter in attempts at inter-species communication.