The Island of Chowra, very small in size (2.8 km), has a population of 1400 people which works out to 500 persons per square mile, the highest both in Andaman and Nicobar groups of islands. Despite these two factors the Chowra Island has an important position in the Nicobar Archipelago. It controls the entire inter-island trade in the Nicobar group of islands. The author examines how with very limited resources and high density of population the Island carries on a lucrative traffic and is thus able to sustain its population which is not small considering the size of the island.