Ko Tao was named by its first settlers for the island's turtle-like geographic shape, however it does not look like, the word 'Tao' means Turtle in Thai. It is located near the eastern shore of the Gulf of Thailand. It covers an area of about 21 kmē. Administratively it forms a tambon within the district Ko Phangan of Surat Thani Province. The main settlement is Ban Mae Hat.
The economy of the island is almost exclusively centered around tourism, especially scuba diving.
As being called as turtle island. Coincidentally, the island is an important breeding ground for Hawksbill turtles and Green turtles. Development of tourism has negatively impacted the health of these grounds but a breeding program organised in 2004 by the Royal Thai Navy and KT-DOC, a coalition of local scuba diving centres has reintroduced hundreds of juvenile turtles to the island's ecosystem.