Blackbeard's Island was an undeveloped natural island in Bay Lake near the Contemporary. The island had an extensive history of occupation dating back to 1900. From 1900 to 1937, the island was owned by the Raz Family who called it Raz Island. They did minor farming on the little bit of land that was available. In the late 1930s it was sold for $800 to Delmar Nicholson. He resided on the island and called it Idle Bay Isle. It was sold again by Orlando business people as a hunting trip before the land was bought by Bay Land Property, Inc; a front for Disney.
Prior to it's opening as Treasure Island, 50,000 cubic yards of dirt was added to the island making it 11 acres. This was done by the Buena Vista Construction Company.