George Town's modern history dates back to 17 July 1786 when Francis Light first set foot at what is now Fort Cornwallis within the downtown area.

Aside from the 260 ha (2.6 km2) UNESCO World Heritage Site which marks the city's old core, the area also includes newer neighbourhoods like Bandar Sri Pinang and The Light Waterfront, which were created through land reclamation since 2000.

[8] The city centre shares boundaries with Tanjong Tokong to the northwest, Air Itam to the west, and Jelutong and Gelugor to the south.

The UNESCO World Heritage Zone that covers the northeastern tip of Penang Island is entirely encompassed by the CBD.

[10][11] In spite of being the commercial and political heart of Penang however, the city centre has witnessed a decline in population since the late 20th century, owing to the rapid industrialisation and economic growth of the suburbs, coupled with the repeal of the Rent Control Act in 2001.

Little India, an ethnic enclave within the Central Business District (CBD), retains significant cultural influences from the Indian subcontinent.

In recent years, Penang authorities, under the governance of Pakatan Harapan, have begun introducing measures to diversify the economy within the city centre.

[19][21][22] Today, much of George Town's financial services remain concentrated within the Central Business District (CBD).

[26] Encompassing areas such as the city's UNESCO World Heritage Site, Pulau Tikus, Kampung Siam, Kampong Serani and Ayer Rajah, the CBD was envisioned as the centre for financial and service sectors, with the aim of enhancing George Town's position as a global city.

The city centre is home to a flourishing retail industry that combines modern shopping malls with traditional shophouses.

According to a Think City report in 2021, a decade after the UNESCO listing, hotels occupied almost 18% of the heritage zone's land use, which is the highest among all business categories.

[45][46] In a bid to reduce reliance on private vehicles and traffic congestion, the Penang state government introduced LinkBike, a public bicycle-sharing system, within the city centre in 2017.

[47] Land reclamation has a long history within the city centre, dating back to the 19th century when British administrators reclaimed a section of the present-day coastline Beach Street.