She was constructed in 1926 as Peralta for the Key System's ferry service on San Francisco Bay. On 6 May 1933 Peralta burned as a result of an arson fire at the terminal where she was moored, resulting in the complete destruction of her superstructure. The hull was still intact and on 12 October 1933 the vessel was sold to the Puget Sound Navigation Company (PSNC), also known by its marketing name, the "Black Ball Line". PSNC funded a refit at Lake Washington Shipyards in Houghton, Washington (since annexed to Kirkland) to restore the vessel as a ferry.
In November 1934, William Thorniley, publicist for PSNC and president of the Olympic Peninsula Travel Association, named the new ferry Kalakala, which was said to mean "bird" in the Pacific Northwest Native American trade language Chinook Jargon. Thorniley launched a national promotional campaign beginning with large billboard signs that simply said "KALAKALA!" Later, they said "KALAKALA, Seattle, WA" and featured a picture of the vessel as well. The vessel was a popular attraction for locals and tourists, and was voted second only to the Space Needle in popularity among visitors to Seattle during the 1962 Seattle World's Fair. The ship is known as the world's first streamlined vessel for her unique art deco styling.
After her retirement in 1967, Kalakala was sold to a seafood processing company in Alaska to work as a factory ship. After a period spent working as a crabbing ship, the Kalakala was beached in Kodiak, Alaska in 1970 and used to process shrimp.
Peter Bevis discovered the rusting hulk on a fishing trip in 1984. Kalakala had been turned into a cannery and the internal structure had been reworked to create a building with cement floors, drywall, and ceiling tiles. After complicated financial negotiations, the ship was refloated and towed back to Seattle in 1998. The vessel has since been a source of controversy as her owners were unable to raise sufficient funds to refurbish the vessel or even to keep her moored in Seattle's Union Bay.
The vessel was sold in 2004 to a private investor, who moved her to an anchorage in Neah Bay provided by the Makah people. Soon after arriving at Neah Bay Kalakala was evicted by the Makah, who also brought a lawsuit against the owners. The vessel has since been relocated to Tacoma, Washington.
The Coast Guard described the ship as being in such fragile condition that it may not withstand being moved to other moorage and might have to be scrapped. In July 2012 Steve Rodrigues sued the state of Washington claiming that the state had failed in its "duty" to help preserve the ferry. Rodrigues' suit asks that the state be prevented from forcing Kalakala to be moved, confiscated, or sunk and seeks to force the state to pay approximately $50 million for restoration of the ferry under a proposal Rodrigues previously submitted, which was rejected. As of November 2012[update], the ship is owned by local businessman Karl Anderson.
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