In 1841, Raphael Semmes acquired farmland at the head of this bayou and named the new homestead Prospect Hill. Several of his colleagues from the Pensacola Navy Yard obtained nearby property and established what was called “a very nice colony of nautical farmers,” and the inlet became known as Semmes Bayou. In 1881, the first post office was established with Amos Ross as postmaster, and the settlement was named for Ross’ daughter, Josephine. In 1898, the McPherson family acquired the Semmes property and built the Mexiwana Hotel. Semmes Bayou became McPherson Bayou, and after McPherson’s death in 1925, the inlet became known as Roberts Bayou.