The Virgin Islands of the United States (2005 est. pop. 108,700), 133 sq mi (344 sq km), are a U.S. territory. Although 68 islands comprise the group, only the three largest—St. Croix (80 sq mi/207 sq km), St. Thomas (32 sq mi/83 sq km), and St. John (20 sq mi/52 sq km)—are of importance. St. Thomas is mountainous and encloses many snug harbors and bays. Charlotte Amalie, the capital and the chief port, is on St. Thomas; it has one of the finest harbors in the Caribbean. Tourism, especially the cruise-ship trade, is the main source of income on St. Thomas. St. Croix, with less mountainous terrain, has an economy that depends in large part on tourism, but petroleum refining and manufacturing are also important. Food crops are raised; sugarcane is no longer grown, but rum is still distilled. The towns of Christiansted and Frederiksted are on St. Croix. The Virgin Islands National Park covers much of St. John. Cattle are raised on all three islands. The Univ. of the Virgin Islands has campuses on St. Thomas and St. Croix. Under a law passed in 1954, the islands are administered by the U.S. Dept. of the Interior. There is a 15-seat Senate, whose members are elected for two-year terms, and a governor, who is elected for a four-year term.

Settlement of St. Thomas was begun by the Danish West India Company in 1672; St. John was claimed by Denmark in 1683, and St. Croix was purchased from France in 1733. The islands became a Danish royal colony in 1754. In 1801, and again from 1807 to 1815, the islands were in British hands. They were purchased from Denmark in 1917 for $25 million because of their strategic position alongside the approach to the Panama Canal. Since 1927, residents have enjoyed U.S. citizenship, and since 1973 they have been represented in the U.S. House of Representatives by a nonvoting delegate. John deJongh was elected governor in 2006.

Immediately to the northeast of the U.S. Virgin Islands are the British Virgin Islands, a British dependency (2005 est. pop. 22,600), 59 sq mi (153 sq km). There are more than 30 islands; 16 are inhabited. The principal ones are Tortola, Anegada, and Virgin Gorda. Road Town, the capital, is on Tortola. Tourism, light industry, and offshore financial services are the most important economic activities. Britain acquired the islands from the Dutch in 1666. Granted autonomy in 1967, they are governed under the constitution of 2007. There is a unicameral House of Assembly whose 13 voting members are elected to four-year terms. The government is headed by a premier, and the monarch of Great Britain and Northern Ireland, represented by a governor, is the head of state.