The plan was first proposed while the existing Praya Reclamation Scheme was already active in 1897. Construction did not start until 20 years later when the Royal Navy agreed to relocate the Naval hospital to Stonecutters Island.[2]
One of the reasons for the reclamation scheme was to provide an enhanced water supply. A cross-harbour pipeline brought water all the way from the New Territories in 1930, the same year that the reclamation scheme was completed.[3]