Liberty Island is a federally owned island in Upper New York Bay in the United States, best known as the location of the Statue of Liberty. The island is an exclave of the New York City borough of Manhattan, surrounded by the waters of Jersey City, New Jersey.he statue arrived in New York Harbor on June 17, 1885, on board the French frigate Isere, isère was stored for eleven months in crates waiting for its pedestal to be, finished and was then reassembled in four. Months On october, 28, 1886 The statue Of liberty was unveiled By President Grover. cleveland