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The island was originally named Île Royale by the French, who controlled in the 17th and 18th centuries the region which is today eastern Canada. The British defeated the French in Quebec in 1763 and took over all of Canada. They renamed the island after the (Italian) explorer born Giovanni Caboto, who explored eastern Canada under the British flag as John Cabot in 1497, just five years after Columbus discovered the New World.

The island was actually a separate crown colony, but was joined to Nova Scotia in 1820.

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