In 1854, the first hotel in the area opened. It was named "The Waverley Tea Gardens" and the surrounding area quickly took that name, quickly shortened to simply "Tea Gardens", which stuck for the next 30 years. By 1878 steam had supplanted wind in milling and the estate was closed. In May 1881 it was subdivided. Streets in this subdivision that exist today are "Mill Hill Road" and "Hough Street". The subdivision of the estate coincided with the opening of the first tramway to the area – steam trams began operation from Taylor Square in Darlinghurst on 12 March 1881.