To the southeast of Po Lam lies the residential neighbourhood of Hang Hau. It was once a small market town that served the whole of Clear Water Bay Peninsula, and was also a hub for ship breaking industries. When the new town was developed, residents of Hang Hau Town were resited into the Hang Hau Town Resite Area at the neighbourhood's northern edge, known presently as Hang Hau Village. The reclaimed part of Hang Hau is now home to a number of residential developments as well as community facilities such as the District Hospital and Sai Kung District Council facilities.