Like Alutiiq people today, the ancient residents of Karluk smoked and dried the river salmon they caught during the summer. The dried fish provided delicious food for family and friends during the long, cold winter. Russian maps often referred to Karluk village (spelled Kallut in Alutiiq) as Nunakakhvak.

Russians and Americans also benefited from the abundant fish at Karluk. The Russian post founded in 1786 included a salmon saltery. The first Kodiak cannery, Karluk Packing Company, was built on Karluk spit in 1878. Just four years later, five canneries were operating at Karluk, bringing many new people to the village. In fact by 1890, only 10% of the people living at Karluk were Alaska Native. At first, seasonal workers were mostly Chinese followed later by Japanese, Filipinos and Mexicans. Scandinavian, Italian and Native fisherman sold their fish to the canneries.

By the late 1800's, millions of fish were being caught and processed each year. Alaska Packers Association finally opened a hatchery in 1896 because officials believed that hatcheries would protect the dwindling salmon runs. But over-fishing continued to reduce the number of salmon at the Karluk River. Eventually the cannery moved to Larsen Bay and the hatchery was closed in 1917.

Some Karluk villagers traveled to Larsen Bay to carry on their work at the cannery. But fishing also continued to be a main industry at Karluk, usually done with purse-seine nets from motorized boats with four-man crews. People today also engage in subsistence hunting, fishing and gathering. The population in 1990 was 71.