In 1821, Florida was transferred from Spain to the United States, and in 1824, two
Key West men, Joshua Appleby and a man named Solomon Snyder, sent an employee, Silas Fletcher, to open a store on Indian Key. The store was to serve wreckers, settlers, and Indians in the upper Keys, and a settlement of primarily Bahamian wreckers and turtlers grew up on the island. By 1829, the settlement was large enough to include a dozen women. Jacob Housman (or Houseman), a wrecker who had a reputation for operating in a "high-handed and often illegal manner", was at odds with the established wreckers in Key West. He moved to Indian Key in 1830, began buying property on the island, and soon became the leader of the community and its chief landlord. He made numerous improvements to the island, spending close to $40,000 on it in four years. His store, the only one on the island, grossed $30,000 a year. As a result of lobbying by Housman, Indian Key acquired an
Inspector of Customs in 1832 and a post office in 1834. In 1836, Houseman persuaded the Territorial Legislative Council to split
Dade County off from Monroe County, with the upper and
middle Keys in the new county and Indian Key as the temporary county seat. Housman also campaigned to have Indian Key made a port of entry, so that salvage from wrecks could be landed there, rather than in Key West, but without success. The
Second Seminole War began late in 1835. After the
New River Massacre in early 1836, most of the Keys were abandoned, except for Key West,
Key Vaca, and Indian Key. Despite fears of attack and sightings of
Indians in the area, the inhabitants of Indian Key stayed to protect their property and to be close to any wrecks in the upper Keys. The islanders had six cannons and their own small militia company for their defense. (The militia company initially included six slaves; by August 1836 half of the 20-man company were blacks.) The
revenue cutter Dexter was based at Indian Key for part of 1838, and after it was withdrawn ships of the
Navy Florida Squadron called at Indian Key and established a supply depot there. In 1840, the Navy supply depot was moved to nearby
Tea Table Key. ==Indian raid==