Charlottetown is located in St. Michaels Bay. It was founded by Mr Ben Powell and Clarence Perry in the 1950s. The community was created to try to centralize the surrounding small settlements so that they can qualify for services such as health, education and religious congregations.
There were a number of small settlements throughout the St. Michaels Bay area where individuals moved from to resettle in Charlottetown. They included such settlements as Square Islands, Tub Harbour, Triangle, Pinsents Arm and Venison Tickle. There were even settlers from further communities like Seal Islands, Dead Islands, and Hawkes Harbour that moved to this location.
The community was called Charlottetown by one of its founders, Ben Powell. He called it after the capital city of Prince Edward Island. His intent was to make the new commuity the capital of St. Michaels Bay, the same way that Charlottetown is the capital of Prince Edward Island.
The newest developments in the community have been the arrival of the Trans Labrador Highway and the construction of a state-of-the-art shrimp processing plant. The shrimp plant processes shrimp on a seasonal basis.