In ancient times,
the windward coast of the island of Lanai was home to many
native residents. In Maunalei Valley was found the only
perennial stream on the island, home to a system of loi kalo
(taro pond field terraces), which supplied all the important
taro of the Hawaiian diet. Sheltered coves, fronted by a barrier
reef, provided the residents with access to important fisheries,
and allowed for the development of loko ia (fishponds),
in which various species of fish were cultivated, and available
to native tenants, even when the ocean was too rough for the
canoes to venture out to sea.
Rains borne upon the
trade-winds also provided water for cultivated crops. And many
claims for kuleana (personal land parcels) were made by
native tenants for lands in this region, when the first
fee-simple ownership of land was granted to Hawaiians by the
King in 1848.
By the 1870s, Walter
M. Gibson, had secured fee-simple interest in most of the lands
of this region, with the exception of the native kuleana
lands. Gibson's business efforts focused on ranching, and most
of the native families came to be employed by him, in various
capacities, such as cowboys, fence and water-men, and as
captains or boat-hands for shipping operations between Lanai
and Lahaina. Until the late 1890s, nearly all of the residents
on the island were Hawaiian, with a few Caucasian managers and
land owners.

In 1899, W.M. Gibson's
daughter, Talula, and his son-in-law, Fredrick Hayselden,
entered into a partnership, and formed the Maunalei
Sugar Company. They developed larger communities along
the coast, imported Japanese laborers, cleared the
lands, developed a narrow gauge railroad between Keomoku
Village and Kahalepalaoa, and planted sugar cane,
irrigated by water from Maunalei Valley. Within three
years, the venture failed, and the plantation was
closed.
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