Boating always has been one of America's favorite pastimes and entered the sport arena in the early nineteenth century. Rowing and yachting races were among the most popular spectator sports through the 1930s. The wealth generated in post Civil War America, along with the growth of railroads, spurred the development of resorts, country homes, and the suburbs–all places to go boating. The federal government began to construct large dams, reservoirs, and lake systems during the Depression, adding to waterways. With the development of the single-operator motorboat and the outboard engine at the turn of the twentieth century, the number of recreational boaters skyrocketed. In 1939, the Coast Guard reported that there were more than 300,000 boats operating in federal waters. In the previous year it had received 14,000 calls for assistance and had responded to 8,600 "in peril" cases–a record number. Boaters needed to be better trained in seamanship and federal law. At the same time, civilian yachtsmen were pressing the Coast Guard to establish a volunteer arm of the service.
As a result of these demands, on June 23, 1939, the Congress passed legislation that established the Coast Guard Reserve, its volunteer civilian component, to promote boating safety and to facilitate the operations of the Coast Guard. Groups of boat owners were organized into flotillas and these into divisions within Coast Guard Districts around the country. Members initially conducted safety and security patrols and helped enforce the provisions of the 1940 Federal Boating and Espionage Acts. Then in February 1941, a military reserve was created and the volunteer Reserve was renamed the U.S. Coast Guard Auxiliary.