About 200 years ago, the village was a place where merchant ships would stop over for water supply when they pass through the Tebrau Straights. In one incident, a ship broke down near the village on its way to Singapore. The crew made the decision to cultivate the land while waiting for the ship to be repaired. Upon seeing the crops growing well in the fertile land contributing highly to their wealth, some of the crew members decided to stay and lived in the area where later they named the place as Sungai Kapal Village.