Happiness Island is an island in the water surrounding Liberty City, officially part of the borough of Algonquin. It is based on the real-life Liberty Island, complete with its own version of the Statue of Liberty, called the Statue of Happiness. The end mission partially occurs on Happiness Island.
Unlike the real-life Liberty Island, Happiness Island has only a light police presence; no reinforcements should arrive (apart from Police Mavericks and Annihilators) as the island is isolated from the mainland, and Predator patrol-boats cannot dock to transport foot police. The island is large enough for the player to escape from a one-star Wanted search radius on foot if they stay out of sight of police, which is useful for players hunting the six pigeons on the island.
There are forklifts on the northern and south-eastern sides of the island, and a Faggio and Blista Compact to the south.
- There are six pigeons located on the Statue of Happiness.
- The "Happiness is...land" sweater is obtained on Happiness Island.