Atsena Otie Key, the original site for the town of Cedar Key, Florida is a Florida island. It includes a swimming area, trail and Faber Mill ruins. The property is part of the Suwannee River Water Management District Atsena Otie Key is a barrier island a half mile offshore from Cedar Key, Florida.
A skeleton found on the island in 1999 was determined to be more than 2,000 years old, attesting to the occupation of the island by Native Americans at that time. In the early 16th century, Spanish explorers reached the Gulf coast of Florida and left their mark in many ways. By the early 17th century, the native population had died off severely due to diseases brought by Europeans. By the 19th century most of the island's indigenous people had been forced to move to reservations out West.
From 1818 to the early 1820s the island was used as a trading post, and was important during the First Seminole War. It remained as such until Florida was made a U.S. Territory in 1821. In 1840 General Walker Keith Armistead, commander at that time of United States troops in the Second Seminole War, ordered construction of a hospital on the island. U.S. Army headquarters for the war in Florida were moved to the island, and it became known as Depot Key. In August, 1842 Colonel William J. Worth, commander of the U.S Army in Florida, met with Seminole leaders on Depot Key and negotiated an agreement that if the Seminoles retreated to southernmost Florida and stayed there the Army would leave them be. On the basis of this agreement, Colonel Worth declared the Second Seminole War to be over. In October, 1842 Depot Key was hit by a hurricane that caused so much damage that the Army abandoned the post.
In 1843 Augustus Steele claimed Depot Key under the Armed Occupation Act of 1842. He renamed the island Atsena Otie Key and built summer cottages for wealthy Florida and Georgia planters. The meaning of the name and Steele's reason for choosing it are unclear. The Cedar Key Post Office was established in 1845, with Augustus Steele as the first postmaster.