Although discovered by the Spanish in 1493, the islands were first settled by Dutch planters before falling into British hands in 1666. In 1672 the Governor of the Leeward Islands annexed Tortola and in 1680 planters from Anguilla moved into Anegada and Virgin Gorda.

The Coppermine on Virgin Gorda is believed to have been mined by the Spanish. It was later worked by Cornish miners in the 19th century.

Civil government was introduced in 1773 with an elected House of Assembly and a part-elected and part-nominated Legislative Council. Between 1872 and 1956 the islands were part of the Leeward Islands Federation (a British Colony), but then became a separately administered entity, building up economic links with the US Virgin Islands rather than joining the West Indies Federation of British territories.

In 1960 direct responsibility was assumed by an appointed Administrator, later to become Governor. The Constitution became effective in 1967 but was later amended in 1977 to allow the islands greater autonomy in domestic affairs.

In 1994, the British Government accepted a proposal from a constitutional review commission for the Legislative Council to be enlarged from nine to 13 seats. The four new members represent the territory as a single constituency. This plan created the first mixed electoral system in the UK, in which voters have one vote for their constituency member as usual, plus four votes for the new territory-wide representatives.

The British government pushed it into effect before 6 December 1994, the last date for the dissolution of the legislature. There was considerable disquiet in the BVI and in the UK at the way in which it was rushed through without prior consultation and without the support of Mr Stoutt's government. background Mr H Lavity Stoutt, of the Virgin Islands Party (VIP), became Chief Minister in 1967-71 and again in 1979-83 and in 1986. At the elections in February 1995 the Virgin Islands Party, still led by Mr Lavity Stoutt, won a third consecutive term in office with six seats. The Concerned Citizens' Movement (CCM) and the United Party (UP) each won two seats. Three independents were elected and one formed an alliance with the VIP. However, Mr Stoutt died in May 1995 and the Deputy Chief Minister Ralph O'Neal took over as Chief Minister.

The VIP won the by-election after Mr Stoutt's death. In the May 1999 elections the VIP retained power, winning seven seats, but it faced a less divided opposition. The newly-formed National Democratic Party (NDP), led by Orlando Smith, attracted support from young professionals, winning five seats, while the CCM won one and the UP failed to win any.