Chai Wan, formerly known as Sai Wan (西灣), lies at the east end of the urban area of Hong Kong Island next to Shau Kei Wan. The area is administratively part of the Eastern District, and is a mosaic of industrial and residential areas. The population was 186,505 in 2001.

Hong Kong Island is an island in the southern part of Hong Kong. The island, known originally and on road signs simply as "Hong Kong", had a population of 1,289,500 and a population density of 16,390 per square kilometre (42,400/sq mi), as of 2008. The island had a population of about 3,000 inhabitants scattered in a dozen fishing villages when it was occupied by the United Kingdom in the First Opium War (1839–1842). In 1842, the island was formally ceded in perpetuity to the UK under the Treaty of Nanking and the City of Victoria was then established on the island by the British Force in honour of Queen Victoria. The Central area on the island is the historical, political and economic centre of Hong Kong. The northern coast of the island forms the southern shore of the Victoria Harbour, which is largely responsible for the development of Hong Kong due to its deep waters favoured by large trade ships.