The economy, once dependent on fishing and farming, is now based mainly on resort activities. The Mohegan Bluffs, spectacular clay cliffs (185 feet [56 metres] high), are on the southern shore. A large area on the island has been set aside as a nature reserve. The Old Harbor (eastern side) was formed in 1873 with the construction of a breakwater; the New Harbor (western side) was formed (1896) by building a channel from Block Island Sound to Great Salt Pond. Old Harbor, with Victorian-style buildings along its waterfront street, has become the island’s main settlement; ferries from the mainland dock there. Year-round ferry service is provided from Point Judith, and seasonal service is available from Providence-Newport; New London, Connecticut; and Montauk, New York. The island also has an airport. New Harbor is the centre of pleasure boating on the island. Block Island Race Week is an annual yachting event. Pop. (2000) 1,010; (2010) 1,051.