The Hong Kong Government had long been interested in developing a new town at Hang Hau because of its proximity to the urban area. The project was postponed for a long time owing to the extensive scale of reclamation in the bay, which is rather deep. The project finally took off under the name of Tseung Kwan O in 1983, when the development of the new town's Phase I was endorsed by the Governor-in-Council. This was followed by the decision to proceed with Phase II, which entailed further reclamation and the clearance of the Kuomintang refugee village at Rennie's Mill (later renamed Tiu Keng Leng), with a view to increase the planned population from 175,000 to 325,000. The first families moved in to the new town in 1988 when public housing at the Head of the Bay (Po Lam Estate) was completed.