The intensive Spanish and French bombardment reduced the town of Gibraltar to ruins and prompted many of its inhabitants, and eventually the off-duty members of the British garrison, to relocate to a spot out of range of the enemy's land-based guns (though as they discovered, they were still vulnerable to naval gunfire).

In August 1779, the civilians were given permission to "erect wooden huts and sheds at the southward, above the Naval hospital, whither they removed their principal papers, &c. that they might be secure from the annoyance of the enemy, in case the town should be bombarded.

The inhabitants were in deepest distress; mothers were seen clasping their tender infants; children were running wildly about scared and crying; while the careful male part were busily employed in packing up their most portable and valuable effects to convey them to [Hardy Town].

[2]Samuel Ancell, an eyewitness to the siege, wrote about the establishment of Hardy Town in a letter to his brother: The inhabitants have begun erecting temporary sheds — some in the Gullies between Buena Vista and Europa, others on Windmill-hill, nor is there scarce any part of the Rock, out of the reach of the enemy's land fire, but what is covered with marquees, tents, huts, &c. &c. Timber is taken from the ruins of the town to answer this necessary business, and the employment occasioned thereby keeps all hands busy.

[10] By the end of the siege, the civilian population of Gibraltar had fallen to fewer than 1,000 people, the rest having either fled abroad, died of starvation or disease, or killed by shellfire.