Pāʻauhau is located near the north coast of the island, 2 miles (3.2 km) east-northeast of Honokaʻa.

[2][3] In 1878 Rufus Anderson Lyman and his family moved to the Hāmākua district and opened a sugarcane plantation.

His business partners were Samuel Parker, William G. Irwin, and Claus Spreckels.

Fields reached up the slopes of Mauna Kea, with an innovative transportation system.

[3] Lyman opened the first post office in Hāmākua and served as its postmaster.