[citation needed] Geologists have shown that Xinhui originated as a shallow bay at the mouth of the Pearl River about 5000 years ago, with its southeastern portion consisting of a chain of islands.

The movement of the Tan and West Rivers eventually formed a delta that became the present alluvial plain over the last nine hundred years.

Most of the present area of the Xinhui district formed during the historical period from silt deposited by the Tan and West Rivers.

The paper company Vinda International has its headquarters in the Donghou Industrial Development Zone (东侯工业区) in Huicheng Town in the district.

Yinzhou Lake (银州湖; 銀州湖), or Yamen Channel (崖门水道; 崖門水道), has an area of 65 km2 (25 sq mi).

The average 8–13 m deep river channel and the gentle water current can accommodate vessels up to 10,000 tonnes deadweight (DWT), and is an advantage for port development and in-river transport.