Oak Bluffs, USA - September 7, 2007: Marina with cruise ship in background in Oak Bluffs, Martha's Vineyard, lit by evening sun. Martha's Vineyard is an island located south of Cape Cod in Massachusetts and is famous as an affluent summer colony. Oak Bluffs is a small town located on the Martha's Vineyard. It was first settled by Europeans in 1642. Oak Bluffs was the only one of the six towns on the island to be consciously planned, and the only one developed specifically with tourism in mind.