Larsen Bay is a city in Kodiak Island Borough, Alaska, United States. At the 2010 census the population was 87, down from 115 in 2000. Lars…Larsen Bay is a city in Kodiak Island Borough, Alaska, United States. At the 2010 census the population was 87, down from 115 in 2000. Larsen Bay is located at 57°32′12″N 153°59′29″W / 57.53667°N 153.99139°W.