city, seat of Kauai county, southeastern Kauai island, Hawaii, U.S. Sugarcane became the locality's economic mainstay with the foundation of the Lihue Sugar Plantation (1849) by German colonists. In 1883 the Germans built a Lutheran church that fused classical New England and Bavarian Baroque architecture. Sugar production continued throughout the 20th century, but by the late 20th century the industry had declined; many abandoned sugar mills are maintained as tourist sites. Lihue is the island's chief port and its cultural and business centre. It is served by an airport to the northeast and the deepwater Nawiliwili Harbor (1930), 1 mile (1.6 km) southeast. Grove Farm Homestead Museum, originally built in 1864 and opened as a living museum in 1978, is located in the former plantation home of a sugar-mill owner. Lihue is the seat of Kauai Community College (founded 1928 as Kalaheo Vocational School), part of the University of Hawaii (Hawaii, University of) system. The Kauai Museum, located in Lihue, features art exhibits and local artifacts.

In ancient times Hawaiian chiefs would prove their courage by diving over the cliff at Wailua Falls, 5 miles (8 km) north. At nearby Niumalu the Menehune Fishpond, dating from about 1,000 years ago, was formed by a 900-foot (275-metre) stone wall at a bend in the Huleia Stream; according to legend, the wall, 4 feet (1.2 metres) wide and 5 feet (1.5 metres) above water level, was built in one night by the menehunes (“little people”), who were said to have accomplished great construction feats. Also near Lihue is Huleia National Wildlife Refuge (closed to the public), which protects the wetlands for endangered native Hawaiian birds. Pop. (1990) 5,536; (2000) 5,674.