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Offshore from Iwilei was a small island on the coral reef on the west site of the bay. It was constructed from an old hulk sunk at the spot in This was replaced and expanded in On the shoreline at about what is now the intersection of Queen and Nimitz Fort Kekuanohu was constructed.
Its original purpose was to protect Honolulu by keeping enemy or otherwise undesirable ships out. Later, it was used as a prison. The Fort, being used as a prison, could not be removed until a new prison was built; construction for the new prison began in , but not entirely completed until more than two years later.
The Fort was then removed in Another Iwilei activity included a railway station. The railroad carried sugarcane from the plantations to Iwilei — it carried people, too. To accommodate this, the marshes and fishponds were filled in and new wharfs built. The docks could accommodate over 20 deepwater sailing vessels, unloading coal and loading sugar. The last of the activities at early Iwilei was the business of sex.
Before there was Hotel Street the s gathering place, there was Iwilei. Most of the women were from Japan. From 4 pm to 2 am, the stockade gates were open. These women did not live at Iwilei; they only went there in the evenings, and then returned to their uptown homes at night. Some had homes of their own, others were servants of families; but all went back to town.
They were in no sense isolated; Iwilei was not their home; they neither eat nor sleep there. Special Legislative Committee Report, By , the Iwilei Stockade was shut down. As time went on, more of the fringing reefs were filled, which made way for expanded commercial use.