Before the completion of the Hornby Vellard project in 1784, which built a causeway uniting all seven islands of Mumbai under William Hornby, governor of Bombay (1771–1784), plugged the Great Breach in Mahalaxmi, while the subsequent Bellasis Road causeway joined Mazagaon and Malabar Hill in 1793.

This resulted in several low-lying marshy areas of Mumbai Flats like Byculla, Tardeo, Mahalaxmi and Kamathipura opening up for habitation.

[7] Till then, as previous 1864 Census figures for Mumbai indicate, other areas had a larger population of prostitutes, like Girgaon (1,044), Phanaswadi (1,323) and Oomburkharee (1,583) compared with Kamathipura (601), all which declined after 1864.

"[9] Kamathipura became established as one of the "comfort zones" in Mumbai for British soldiers, and this is embedded within the local origin stories.

[17] Some historical sources point out[citation needed] that the origin of slums, subsequently the red-light areas of Mumbai including Kamathipura is related to land acquisition, from the indigenous population who were evicted from their farmlands and cattle-fields and forced to live in congested conditions, to facilitate the development of the industrial harbor city.

Later, as men became unemployed due to lack of jobs, more women began to engage in sex work in order to survive.

Gang activity also increased in the area; in the 1970s and early '80s, Bachchu Wadi at Kamathipura was frequented by gangleaders from the Mumbai underworld, such as Haji Mastan, Karim Lala, and Dawood Ibrahim.

[7] The 2005 statewide ban on dance bars resulted in many former female dancers resorting to prostitution in Mumbai's red-light districts in order to survive.

[18] The area is also home to a small cottage industry of about 200 women who make a living rolling beedis (hand-rolled Indian cigarette).

Further, lack of public opinion, political leadership or social activism which is empathetic towards them means a tough time forming unions.