In 1869 the Lighthouse Board wanted to build a lighthouse on Hog Island Shoal to replace a small lightship maintained on the shoal by the Old Colony Steamboat Company. The lightship had a weak light that made it hard to see in anything but the best weather. The Board asked Congress for $45,000 to build it. The appropriation was turned down.

In 1885 the Lighthouse Board decided that a lighthouse shouldn't be built on Hog Island Shoal because it could cause damage to the channel. It now felt that a lightship would better serve the site. This change in thinking was due to money. The Board wanted to replace the Old Colony lightship but knew Congress wasn't going to appropriate money for a lighthouse anytime in the foreseeable future. Light Vessel 12 had recently been taken off of Ell Grass Shoal and was not being used. It could be moved to Hog Island Shoal without an appropriation. .

On July 28, 1886, Congress authorized the move of the LV-12 to Hog Island Shoal. It was put on station on August 14.

Hog Island Shoal Lightship was an old ship; it was built in 1846. It needed frequent repairs to stay on station. During an 1891 inspection the ship was found to be " structurally weak from general decay" and " beyond economical repair." The Lighthouse Board wanted to replace the worn out LV 12 with a new lightship of at least double her size and strength. It was estimated it would cost $70,000 to build the new ship. Congress didn't appropriate the money. The Board repeated the request in 1892 and 1893. They were turned dowm.

In the mid 1890's the Lighthouse Board decided build to a lighthouse instead of a lightship for Hog Island Shoal. From 1895 to 1898 the Board made a yearly request to Congress for $35,000 to build it. It was denied every year. Congress finally appropriated the money in 1899.

Hog Island Lighthouse was built in 1901. LV-12 remained on station until the lighthouse was lighted on November 14. It was sold in 1903 for $360.