A major luxury hotel and mixed-use development is being proposed for Water Island in the US Virgin Islands, with Acting Governor Tregenza Roach confirming the project is now moving forward.

He provided an update on the development while speaking at a media conference on June 1.

The proposal, local publication VI Consortium reported is being spearheaded by Florida-based firm Bluewater Global Advisors and requires consideration from the territory’s legislature.

If approved, the development would transform a large section of Water Island into a branded resort and residential community. 

Plans include at least 88 hotel rooms, a marina, restaurants, a spa, and up to 100 private residences.

The project is expected to require a minimum private investment of $300 million, with total costs projected to climb to around $440 million. 

It could also generate about 200 construction jobs and roughly 300 permanent positions once completed.

Roach described the initiative as more than just a tourism project.

“This is not just about building a resort,” he said. “It’s about combining tourism, infrastructure, housing and real community investment.”

The proposal also includes upgrades to roads, drainage systems, utilities and marine infrastructure on Water Island, improvements Roach said are critical to ensuring the wider community benefits from the development.

“Opportunities like this don’t come often,” he added. “If we want to grow the economy, expand the tax base and improve infrastructure, we have to be ready to move projects like this forward carefully, but with urgency.”

The project is now awaiting review by the territory’s legislature, which will assess its potential impact and ensure it serves the public interest.

During the same briefing, Roach also addressed ongoing power outages affecting St Thomas and St John, acknowledging growing frustration among residents and businesses.

“I know people are frustrated. I am frustrated too,” he said, adding that the public deserves more reliable electricity.

He said the administration is continuing to press the Virgin Islands Water and Power Authority for better accountability, faster response times and clearer communication. At the same time, he thanked frontline workers for their efforts to keep the system running under challenging conditions.