In World War II, the area was highly involved in the production of the V2 rocket, until the production’s relocation to Nordhausen. The village’s docks were used for the ships which recovered V-2 wreckage from launches over the Baltic Sea. The entire island was captured by the Allies on May 5, 1945. The gas plant for the production of liquid oxygen still lies in ruins at the entrance to Peenemünde.
From Wikipedia: http://en.wikipedia.org/wiki/Peenemünde