The area now known as Ayer Itam was first developed in the late 18th century, soon after the founding of Penang Island by Captain Francis Light in 1786. British officials intended to turn Ayer Itam, including Penang Hill, into an agricultural area and established spice farms. To this day, fruits and vegetables are still grown at the hills of Ayer Itam; fresh produce are then brought downhill daily to the wet markets throughout George Town.