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Craig is located on a small island off the west coast of Prince of Wales Island, and is connected by a short causeway. It is 5 miles south of Klawock, by road. It lies 56 miles northwest of Ketchikan, 750 air miles north of Seattle, 220 miles south of Juneau, and 750 air miles southwest of Anchorage. It lies at approximately 55░ 28' N Latitude, 133░ 09' W Longitude (Sec. 06, T074S, R081E, Copper River Meridian). The community is located in the Ketchikan Recording District. The area encompasses 6 sq. miles of land and 3 sq. miles of water.

The Tlingit and Haida peoples have historically utilized the area around Craig for its rich resources. A fish saltery was built on nearby Fish Egg Island in 1907 by Craig Miller. Between 1908 and 1911, he constructed the Lyndenburger Packing Company and cold storage plant at the present site of Craig. In 1912, a post office, a school, a sawmill, and a salmon cannery were constructed. Excellent pink salmon runs contributed to the development and growth of the community through the late 1930s. During the 1950s, the fishing industry collapsed due to depleted salmon runs. In 1972, Ed Head built a large sawmill six miles from Craig near Klawock, which provided year-round jobs and helped to stabilize the economy. Head Mill was sold in the early 1990s to Viking Lumber.




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