Gypsy was built in 1912 by George Lawley and Sons at Neponset, Massachusetts as a private motorboat.[1] The U.S. Navy purchased Gypsy on 11 May 1917 for World War I service for $9,000 from Robert F. Herrick of Boston, who also owned Apache that was also purchased by the Navy on 23 May 1917 just before completion.[1] [2] The craft was intended to use her as a patrol boat in the Section Patrol. However, before she could be commissioned, she was completely destroyed by an accidental fire while fitting out, on 20 June 1917 off coast of the U.S. Coast Guard Station Allerton Point, south east of Boston, Massachusetts.[1]
Gypsy was stricken from the Navy List on 23 November 1919.[1]