Until World War II it was popular with artists and bohemians. The War and and the subsequent Vietnam war brought in many servicemen from the nearby Garden Island naval base for rest & recreation leave. This led to 'the Cross' becoming Sydney's major red light district.

Known as Queen's Cross until the early 20th century, it was renamed King's Cross after Edward VII of the United Kingdom, and has retained that name since. The cross is a reference to the crossroad formed by William Street and Darlinghurst Road.