The island was originally chosen by the British as a comparatively isolated and healthier alternative to the disease-ridden larger islands of the Solomons. The Japan ese occupied it on 3 May 1942 , with the intention of setting up a Seaplane base nearby, and the ships in Tulagi harbor were raided by planes from USS ''Yorktown'' the following day, in a prelude to the Battle Of The Coral Sea . US forces landed on 7 August and captured Tulagi after a day of hard fighting. After its capture by Naval and Marine forces, the Island hosted a fleet of PT Boats for a year as well as other ancillary facilities. A small 20 bed Dispensary was operated there until its closure in 1946. The Island also formed part of Purvus bay which hosted many U.S. Navy ships during 1942 and 1943
The present-day Tulagi has a Fishing Fleet and is developing a Scuba Diving industry; the wrecks of USS ''Aaron Ward'' , USS ''Kanawha'' , and HMNZS ''Moa'' are close by, and the wrecks of Ironbottom Sound are not much further off.
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