It developed a close community relationship with neighbouring Canley Vale, and until 1899, they shared a common municipality. In 1948, Cabramatta's local government merged with the neighbouring City of Fairfield, and today remains governed by the Fairfield City Council. It evolved into a Sydney suburb in the mid 20th century, partly as the result of a major state housing project in the nearby Liverpool area in the 1960s that in turn swallowed Cabramatta. The presence of a migrant hostel alongside Cabramatta High School was decisive in shaping the community in the post-war period. In the first phase, large numbers of post-war immigrants from Europe passed through the hostel and settled in the surrounding area during the 1950s and 1960s. They satisfied labour demand for surrounding manufacturing and construction activities, and eventually gave birth to a rapidly growing population in the late 1960s and early 1970s. The entrepreneurs were developing local enterprises.