The area is where Commodore James Bremer, commander-in-chief of the British forces in China, took formal possession of Hong Kong on 26 January 1841. Captain Edward Belcher, who surveyed the island in 1841, wrote: "We landed on Monday, the 26th, at fifteen minutes past eight, and being the bona fide first possessors, her Majesty's health was drank with three cheers on Possession Mount." Accompanied by officers of the naval squadron, Bremer took formal possession, under a feu de joie from the Royal Marines and a royal salute from the men-of-war ships. The area came to be known as Possession Point. It was kept an open space, and used for recreation by the local Chinese, who called it Tai Tat Tei. It was developed in the 1980s and formed into a hotel and commercial complex, which is the site of the Hong Kong–Macau Ferry Terminal.
The point has now disappeared from the coastline, but Possession Street and the sudden turn of Queen's Road West reveals its original location. In maps of the 1980s and before, Hollywood Road Park is marked as Possession Point. This marks the original site which, owing to land reclamation, is no longer located on the coast.
The Chinese name, 水坑口 (Shui Hang Hau), means the mouth of water trench, reflecting the mouth of a stream from Victoria Peak.
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