In December 1941, the Japanese invasion of the island resulted in the Battle of Hong Kong, with approximately 20 gunners executed at the Sai Wan Battery despite having surrendered.

In 1952, the government began building low-income housing that gradually replaced rural villages in the area.

Heng Fa Chuen is a private residential estate in Chai Wan, jointly developed by MTR Corporation and Kerry Properties.

Construction of the residential estate began on 13 August 1977, ended on 26 April 1982 and officially opened on 10 July 1982.

The area was reclaimed from Pak Sha Wan (白沙灣) and Lei Yue Mun Bay (鯉魚門灣).

In the early 1980s, when the Island line of the MTR was being planned, the working name of the station was "Chai Wan Quay", according to the Freeman, Fox, Wilbur Smith & Associates Mass Transportation Study.

Not only was the name changed, but also it was relocated to its present place from the old location near Chai Wan pier/Ming Pao Industrial Centre.

It is an item of note that the area used to be under the flightpath of planes landing on the southern side of Kai Tak Airport's runway, and therefore most tower blocks had to be built lower than 20 floors.

[13] Mount Collinson has a range of cemeteries: Chai Wan is served by two stations of the MTR rapid transit railway, both on the Island line: The Chai Wan Depot is located under blocks 1 to 18 of Heng Fa Chuen Estate and beside Heng Fa Chuen station.