Alykes has only recently become a tourist resort, as previously it was a subsidiary of the village of Katastari and its history is closely linked to this neighbouring village. Katastari is the second most populated village on the island (after the capital Zakynthos Town) and is the capital of the local government district of Alykon.
In ancient times people moved away from Alykes, which is on the coast, as they had fear of being attacked by pirates so instead chose to settle 2 km north west in Katastari. Katastari has a good geographical position being at the foothills of the Vrahionas Mountain, providing a safe location at a good distance away from the coast and the possibility of pirate attack. Alykes therefore remained uninhabited for many years.
The name Katastari means "lower wheat fields" and derived this name as the villagers used the land in Alykes for agricultural purposes, as they were not living there. After the Second World War, the Greek government was seeking a place for the production of salt.
Alykes was chosen due to its abundance of flat land ideal for agricultural use and this is how it got its name - as Alykes means salt flats in Greek.
The salt flats produced salt until the late 1970's but in 1980 they were closed as the Greek Government felt that the business was no longer viable. Nowadays the salt flats remain undisturbed and are a habitat to local wildlife.