Known historically for its plentiful supply of exposed fresh water at La Aguada, one theory holds that Caye Caulker was a favorite stop for sailors to replenish and cork water bottles. The Spanish name of the island is Cayo Hicaco, which means “the island of the cocoplum.” “Caye Caulker” could be an anglicized pronunciation of Cayo Hicaco. Another theory is that boats were caulked in the protected bay, La Ensenada, on the western side of the island leading to the “Caulker” name. (source)
Despite the growth of tourism, Caye Caulker remains a small village with a distinct cultural flavor not necessarily found in large-scale tourist development. Almost all the businesses are locally owned, vehicles larger than golf carts almost never roam the streets, and lodging is small scale and relatively inexpensive compared to many other tourist destinations. We prefer to keep it this way. We frown upon large-scale development and focus upon the preservation of our unique heritage. (source)