Its water came from a stream in the nearby valley of Liu To and its outlet was at Tsing Yi Bay.
[1] It acted as the shelter for nearby boat people, especially after large-scale land reclamation in Tsuen Wan and Kwai Chung.
Both the lagoon and the neighbouring Tsing Yi Bay, were reclaimed for new towns.
[2][3] After reclamation, the northern portion became Tsing Yi Estate and the remainder became temporary housing areas, which were later demolished.
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