American River sits on the western shore of Eastern Cove and is named after the American sealers that stayed on this part of the island in 1803. While the area was named American River, it’s actually an ocean inlet. The local wharf was home to some of the first industries on Kangaroo Island with canned fish, salt, gypsum and mallee wood being shipped to Port Adelaide.
The town looks out over Pelican Lagoon. Waterbirds that use the lagoon include nine species that breed in the locality such as the chestnut teal, pied oystercatcher, pelian, sooty oystercatcher and caspian tern. The lagoon is also reported as a breeding site for the little penguin.