Although Ponce de Leon had named the island after Saint Mark, La Isla de San Marco was soon shortened to San Marco Island, and finally to Marco Island. In 1870, William T. Collier brought his wife and nine children to Marco Island from Tennessee and became the first American settler on the island. In 1896, his son, William D. "Captain Bill" Collier opened a 20 room hotel that is known today as the Olde Marco Inn and is registered as a historical landmark.

In 1922, Barron Collier, who was not related to the original settlers and had made his fortune in streetcar advertising, purchased most of the land on the island. Collier was responsible for building the Tamiami Trail, which linked Tampa to Miami, spending over 1 million dollars of his own money on the project. In May 1927, the island was incorporated by the state legislature and named Collier City. That same year the Atlantic Coast Railroad was extended to the island. Cityhood was short-lived, however, and the state legislature abolished Collier City as a city in 1957.

Due to the Great Depression, Collier was unable to develop Marco Island. Most of the city was built in the 1960's when Colliers last holding were purchased by the famous Deltona Corporation, run by the Mackle brothers. The Deltona Corporation was the developer of many cities throughout Florida. A successful marketing campaign drew blue-collar workers as well as the rich and famous to Marco Island.