Historically, hanamachi could contain a high number of okiya and ochaya, and would also contain a kaburenjō (歌舞練所) as well – a communal meeting place for geisha, typically containing a theater, rooms where classes in the traditional arts could be held, and a kenban (registry office) who would process a geisha's pay, regulation of the profession, and other related matters.

Three yūkaku were established in Japan in the early 1600s: Shimabara in Kyoto in 1640,[1] Shinmachi in Osaka between 1624 and 1644,[1] and Yoshiwara in Edo (modern-day Tokyo) in 1617.

Tayū, technically the highest rank of courtesan, also lived in the red-light districts; however, unlike oiran, they did not engage in sex work, and were instead renowned as upper-class entertainers prized for their training in the traditional arts, which typically began at an early age.

Having developed from a previously-male profession of entertainers who performed at the parties of some yūjo, geisha were at times legally prevented from operating outside of yūkaku, despite also being legally prevented from appearing as, operating as and stealing clients from courtesans; as a result, many yūkaku went on to develop into hanamachi.

A summer tradition around the time of the Gion Festival among the hanamachi of Kyoto is to distribute personalized uchiwa (団扇, flat fans) to favored patrons and stores that both maiko and geisha frequent.

The dances are as follows (listed in order of performance through the year): The district of Shimabara previously produced the Aoyagi Odori (青柳踊) from 1873 to 1880.

This is known as the "Five Geisha Districts Evening" (五花街の夕べ, gokagai no yūbe), and is quite expensive (as is usual for kaiseki) and very limited availability; this has been held since 1994.