Although it lies at one of the lowest elevations in Holyoke, its name derives not from topography but from the brick tenement "flats" which characterized its architecture throughout much of its history.

[4][5] Today the area features the Holyoke Innovation District, Canal System, Hadley Falls Company Housing District, Marcella Kelly Elementary School, local Amtrak station and 275 acres (111 ha) of residential, commercial, and industrial zoning.

The Flats faced mass depopulation following the issuance of city master plans in 1961 and 1968, which called for its conversion from mixed zoning to entirely industrial land use; from 1970 to 1980 this urban renewal initiative, combined with fires from substandard housing conditions and arson, reduced the number of housing units in the neighborhood by 41%.

[6] In recent years municipal and state authorities have sought to redevelop the neighborhood as a startup company incubator and cultural center through the creation of the Innovation District and Canalwalk.

[7][8] That same year the building became one of two sites for the world's first public-use toll line, which connected Springfield and Holyoke when it entered service on June 15, 1878.