[citation needed] Described in the 1880s as the "Toorak of Collingwood",[3] Clifton Hill fell out of favour, along with much of inner Melbourne, by the mid 20th century.

Later becoming a centre of Melbourne's bohemianism, the suburb has undergone rapid gentrification in recent years with renewed interest in its inner city location and Victorian and Edwardian housing stock.

[5] The area now known as Clifton Hill was inhabited from an estimated 31,000 to 40,000 years ago[6] and is part of the lands of the Wurundjeri people of the Kulin nation.

Consequently, Smith, Wellington and Hoddle Streets were extended north to connect with Heidelberg Road (now Queens Parade), and planning of Clifton Hill proceeded on a more organised basis than that of the remainder of the municipality, including reservation of land for public recreation purposes.

[9] During the following years, disputes arose as competing interests proposed different locations and routes for infrastructure to be constructed through the municipality, such as major roads and bridges.

[7] In 1862, a petition from the 'Municipal District of East Collingwood' was presented to the Legislative Assembly citing the good work of the local Vigilance Committee towards improving Clifton Hill.

By the end of the 1880s, the area was described as "a residential suburb.... which has of late years been extensively built on with a good class of houses and numerous handsome shops.

"[11] The Melbourne Tramway & Omnibus Company's cable tramway reached Clifton Hill in 1887,[12] providing convenient transport to the commercial district of Smith Street, Collingwood, Bourke Street in the City Centre, as well as spurring development of the local Queens Parade commercial district around the tram terminus.

The elevated location, planned wide streets and calibre of housing resulted in Clifton Hill being described in the 1886 as "The Toorak of Collingwood".

[3] Clifton Hill's residential attraction lessened entering the 20th century as middle class housing grew and industry took up land for factories, mostly in the South of the suburb, adjacent to Alexandra Parade.

By the 1960s, the number of intrusive blocks of flats were built, particularly on prominent streets such as South Terrace, overlooking the Darling Gardens.

Clifton Hill was the site of the 1987 Hoddle Street massacre, in which 19-year-old Julian Knight embarked on the 45-minute shooting spree killing seven people and injuring 19 before being arrested by police.

However, because of development and badly leased commercial properties[citation needed] most of the film makers in recent years have moved to the neighbouring suburb of Fitzroy.

Clifton Hill railway station forms the junction between the Mernda and Hurstbridge lines, and is located at the corner of Hoddle and Ramsden Streets, opposite Mayors Park and the Darling Gardens.