Chinatown's history dates way back to 1819, when Singapore was first founded by Sir Stamford Raffles. The very first immigrants arrived at the mouth of the Singapore River in 1821 from Xiamen, in Fujian province, China. These pioneers erected the original Thian Hock Keng Temple to thank the Goddess of the Sea for their safe voyage, and asked for continued fortune in their new homeland. Raffles set aside Chinatown for the Chinese Community in his Singapore Town Plan in 1842. Hence, Chinatown became a place, which these immigrants called home, while the nearby Singapore River became a place to find work.

To this day, Chinatown remained as a place of interest for Chinese and tourists alike, especially during Chinese New Year where many traditional goods can be purchase here. Chinatown is thus rich in Chinese culture and hence different communities should visit it to learn new knowledge and be educated on Chinese culture, and in turn able to unite different communities in Singapore.

In malay, 'Telok Ayer' means 'Street by the bay". At one time, it was Singapore's South-east shoreline. Later, reclaimation turned it into a bay.

Pagoda Street is named after Sri Mariamman Temple, which is located on the corner of the street. The high tower of the temple, called the "Gopuram" in Tamil looked like a pagoda and therefore the road was named after it.

It is believed that the street got its name from the various tin smiths, who lived in that area. However, its name may have also been derived from Sir Ceil Clementi Smith. Sir Smith was involved in Chinese affairs and was instrumental in establishing law and order amongst Chinese Secret societies.

Sago is used in food, especially in puddings and grown in tropical areas. In the past, there were many sago factories in this area and hence, the street was named after them.