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Krakatoa is a volcano, based in sea tiles, and surrounded by coastal tiles. Whether by design or an oversight, the Krakatoa is almost impossible to take advantage of in-game, as it usually appears too far from the coast (there's no way to build a ctiy withing 3 tiles of it).
Krakatoa is a volcanic island located in Indonesia, between the islands of Java and Sumatra. The volcano exploded violently in August, 1883 with a force equivalent to 13,000 times the power of the Hiroshima nuclear bomb. The eruption destroyed over half of the island, and was heard in parts of Australia, some 2,000 miles away. Some 37,000 people were killed by the eruption and subsequent tsunamis. The volcano has been emitting lava steadily for the past eighty years, rebuilding the cone at a rate of about 15 feet per year.