In the 1920's, a small cove in Canoe Bay was used as a shipping point and safe-haven for rumrunners during U.S. prohibition. During this period, contraband liquor was shipped to the San Juan Islands and several other locations in Puget Sound. By the end of the 20's, a sheltered marina had been established in Canoe Cove. This facility was the birth of what is now Canoe Cove Marina. In the early 1930's, a boat building operation specializing in construction of small wooden vessels began operations as Canoe Cove Marina. In 1958, the Marina was sold and the new owners continued to build a complete line of wooden boats, including sailboats. The last wooden boat was launched in 1964, heralding a succession of popular fibreglass powerboats called the "Canoe Cove" line of vessels.

The Marina, excluding the boat building section, which continued operations with the pervious owners, was sold in 1974 to the present owners. As the popularity of pleasure boating increased over the years, so have the facilities and services of Canoe Cove Marina which currently offers over 450 "wet" slips, including 140 boathouses and 100 covered slips as well as a 120-vessel dry-land storage yard. As moorage and storage facilities expanded, so too have support services. The Marina now operates one of the largest full-service yacht repair facilities in British Columbia, providing services from bottom paint application to major mechanical installations, structural repair and modifications of fibreglass, aluminium and steel vessels. Other onshore amenities include a fully stocked marine-hardware chandlery, “Sofie’s Café” seaside restaurant and coffee bar, full service fuel dock as well as laundry, shower and washroom facilities.

$1.2 million worth of upgrades to the haulout and yacht repair facilities were completed in March 2008. The main upgrades include a brand new 55-ton Marine Travelift, a completely revamped drainage system to capture run-off and boat washing water, and a large paved section in the boatyard on which repairs to customer’s boats are done. Not only is the marina now eco-friendly, the new lift allows for the hauling and launching of bigger boats.

When the natural setting of the property, the character of the buildings and the activity of the repair Yard is mixed with the holiday mindset of boaters, the atmosphere is always welcoming and definitely unique to Canoe Cove Marina