The town was founded in 1883 when Heinrich Vogelsang purchased Angra Pequena and some of the surrounding land on behalf of Adolf L�deritz, a Hanseat from Bremen in Germany, from the local Nama chief. L�deritz began its life as a trading post, with other activities in fishing and guano-harvesting.
In 1909, after the discovery of diamonds nearby, L�deritz enjoyed a sudden surge of prosperity due to the development of a diamond rush to the area. In 1912 L�deritz already had 1,100 inhabitants, not counting the indigenous population. Although situated in harsh environment between desert and Ocean, trade in the harbour town surged, and the adjacent diamond mining settlement of Kolmanskop was built.
After the German World War I capitulation South Africa took over the administration of German South-West Africa in 1915. Many Germans were deported from L�deritz, contributing to its shrinking in population numbers. From 1920 onwards, diamond mining was only conducted further south of town in places like Pomona and Elizabeth Bay. This development consequently led to the loss of L�deritz' importance as trade place. Only small fishing enterprises, minimal dock activity, and a few carpet weavers remained.
The harbour has a very shallow rock bottom, making it unusable for modern ships; this led to Walvis Bay becoming the centre of the Namibian shipping industry. Recently, however, the addition of a new quay has allowed larger fishing vessels to dock at L�deritz. The town has also re-styled itself in an attempt to lure tourists to the area, which includes a new waterfront area for shops and offices.
In the bay lies Shark island, site of the extermination camp that was used in the Herero and Namaqua Genocide between 1904 and 1907.
Just outside of L�deritz lies the ghost town of Kolmanskop, a prominent tourist destination. This previously bustling diamond town is now abandoned, and fights a constant struggle against being buried under the shifting
