The third homestay in Labuan has a unique history.   Centuries ago, the river in this village had waters so deep that barges and junks used to dock in it.  These vessels belong to the Chinese who escaped from the war in their land.  They loved eating pumpkins and it was their staple diet.  A famine hit the land for 6 months and after which, a heavy rainfall that lasted 7 days and 7 nights caused a massive flood to the village.  The flood waters and heavy river currents washed the pumpkins from the Chinese ships overboard.  Not long thereafter, many pumpkin seedlings took root and grew along the river banks.  As a result, the villagers named the place Kampung Sungai Labu (Pumpkin River Village).

Kampung Sungai Labu is fringed by a lovely stretch of beach cove and its distinctive village houses are graced by charming curtain-laced windows. 

Similar to Kampung Patau-Patau 2 and Kampung Bukit Kuda, the villagers are mostly of the Kedayan Bruneian descent.  They make up about half of Labuan's Muslim population and are famed for their delicious homemade Kuih Cincin (Ring Biscuits) and Kuih Baulu (little spongy cakes). 

Ammenities include basic sanitary facilities, electricity and water supply, a surau (a place of worship for Muslims that is smaller than a mosque), community hall, bus stops, cottage industry workshops, grocery stores, mini fish market, volleyball court, sepak takraw court, playgrounds and a football field.

Rates:

A standard 2D/1N package of RM65 per person includes a standard room, welcome drink and all three meals.  Additional activities are priced as follows:

• Traditional food making (RM10 per person)
• Ambuyat (a Kedayan Brunei sago delicacy) making (RM5 per person)
• Shore fishing with fishing rod or fishing net (RM10 per person)
• Cycling around the vllage (RM 6 per person)
• Kedayan Traditional Show "Berpapat Jambol" (RM15 per person)