town, Island county, northwestern Washington, U.S., on Whidbey Island in Puget Sound. It was settled in 1849 by seafaring men, and its first industry was shipbuilding. Dutch immigrants arrived in 1890 and began developing the rich farmland; their presence on the island is celebrated in the town's annual Holland Happenings festival. The chief agricultural products are dairy foods, wheat, poultry, and truck-garden vegetables. The town has become a major trade and recreation centre on the island. The Whidbey Island Naval Air Station, the largest in the Pacific Northwest, is 5 miles (8 km) north. Deception Pass State Park is midway between Oak Harbor and Anacortes. The town is surrounded by giant oak trees, whence its name. Inc. 1915. Pop. (1990) 17,176; (2000) 19,795.