Caswell Beach Located at the mouth of the Cape Fear River with long sandy beaches and mild weather, its no wonder so many people visit here each year. Named after the historic Fort Caswell located at the eastern tip of the island, Caswell Beach is home to the brightest lighthouse in the United States and boasts a Coast Guard Station remininiscent of the old coastal life saving stations. Deep dunes and sprawling beach cottages line the oceanside, and marshside cottages on pilings overlook the Cape Fear river Shipping Channel. The only souvenirs available at Caswell Beach are the shells collected on quiet lowtide walks along this beautiful shore. There is no commercial development making it a very quiet place to vacation. The town takes its name from Fort Caswell which was established by the Army in 1826. The fort was seized in 1861 by Confederate troops and held until 1865. The most important architectural feature of Caswell Beach is the Oak Island Lighthouse, which started operating in 1958 to warn ships of the treacherous Frying Pan Shoals and to guide mariners safely to the Cape Fear River. Known as the second brightest lighthouse in the country, the beacon atop the towering gray, black and white silo can be seen nearly 30 miles offshore.