The British Armed Forces then set up an intelligence gathering centre in Siu Sai Wan, one of the largest in the Far East, to monitor wireless communications from Taiwan (ROC) to China (PRC).

[2] At the same time, along with the development of the Mass Transit Railway, the resettlement estates in Chai Wan were to be demolished.

To accommodate residents from these estates and from the expanding urban population, the government decided to develop Siu Sai Wan.

Siu Sai Wan faces Tathong Channel and Lei Yue Mun, an entrance to the Victoria Harbour.

However, residents can walk or take Green Public Light Buses route 47M to reach Chai Wan station, the terminus of the Island line.