Douglas is the more recent capital of the Island. Having assumed that role during the latter half of the last century, when it developed into one of the major holiday venues of the north, particularly during the inter-war years, and immediately after the last war, now it is the centre of commerce and finance.

Douglas takes its name from the two rivers. From the slopes of Greeba Mountain near the middle of the Island runs river Dhoo (Black or Dark) runs gently eastward until about a mile from Douglas it unites with the Glass (Bright or Clear) which flows south from Injebrek, and the two streams become Dhoo Glass

Unlike Castletown and Peel it has very little to offer historically. Originally an unimportant fishing hamlet, Douglas first began to look up in the eighteenth century when Smuggler Bill and his confederates discovered how convenient a base it was for operations in England. When Free Trade and the Exciseman between them stopped the smuggling Douglas drooped again. About 20 years later in 1830 the idea of a regular ferry service from Douglas to Liverpool. This coincided with the start of tourism and brought about the growth of Douglas which led it to become the Isle of Man's capital.

Douglas has a population of 30 odd thousand inhabitants and architecturally was designed to cater for the holiday trade. One of the more striking features as you look over the bay, is of course the Tower of Refuge built on the Conister rock. This was built by Sir William Hillary, the founder of the Royal National Lifeboat Institution in 1832, who resided in Douglas and took an active part in many rescues which were a frequent occurrence at that time, and later by his untiring efforts caused that magnificent institution to be formed.