The first Russian settlers founded a village on the present site of Nevelsk in 1789.[citation needed] The region was the site of a struggle for control between the Russians and Japanese. After the Treaty of Shimoda officially transferred the southern Kuril Islands to Japan in 1855, the settlement was placed under joint Russian-Japanese administration under the name Honto (derived from the Ainu language).
Honto reverted to complete Russian administration in 1875, as the Treaty of Saint Petersburg gave control of all the Kuril Islands to Japan, in exchange for complete Russian sovereignty over the island of Sakhalin. It then returned to Japanese rule in 1905, after the Treaty of Portsmouth ceded southern Sakhalin to Japan to end the Russo-Japanese War.
Sakhalin's first ice-free harbor was constructed here between 1916 and 1927, and the settlement developed as a center for the local fishing industry.
The end of World War II saw the Soviet Army retake the full island of Sakhalin and the Kuril Islands. The settlement was granted town status in 1947 under its present name, in honor of Admiral Gennady Nevelskoy.[citation needed]
The town's economy relies largely on fishing and associated industries. Due to relatively warm ocean currents, the town is located in the mildest climatic zone on the island of Sakhalin, making possible agriculture in the surrounding region. There have been recent efforts to develop the area as a tourist area for marine animal viewing, diving and yachting.
Сахалинская областная Дума. Закон №25-ЗО от 23 марта 2011 г. «Об административно-территориальном устройстве Сахалинской области», в ред. Закона №62-ЗО от 27 июня 2013 г. «О внесении изменения в статью 10 Закона Сахалинской области "Об административно-территориальном устройстве Сахалинской области"». Вступил в силу 9 апреля 2011 г.. Опубликован: "Губернские ведомости", №55(3742), 29 марта 2011 г. (Sakhalin Oblast Duma. Law #25-ZO of March 23, 2011 On the Administrative-Territorial Structure of Sakhalin Oblast, as amended by the Law #62-ZO of June 27, 2013 On Amending Article 10 of the Law of Sakhalin Oblast "On the Administrative-Territorial Structure of Sakhalin Oblast". Effective as of April 9, 2011.).
Сахалинская областная Дума. Закон №524 от 21 июля 2004 г. «О границах и статусе муниципальных образований в Сахалинской области», в ред. Закона №45-ЗО от 27 мая 2013 г. «О внесении изменения в Закон Сахалинской области "О границах и статусе муниципальных образований в Сахалинской области"». Вступил в силу 1 января 2005 г. Опубликован: "Губернские ведомости", №175–176(2111–2112), 31 июля 2004 г. (Sakhalin Oblast Duma. Law #524 of July 21, 2004 On the Borders and Status of the Municipal Formations in Sakhalin Oblast, as amended by the Law #45-ZO of May 27, 2013 On Amending the Law of Sakhalin Oblast "On the Borders and Status of the Municipal Formations in Sakhalin Oblast". Effective as of January 1, 2005.).