In 1901, Stewart Merrill bought the south portion and called his section "Manhattan" after his old home in N.Y., N.Y.. Peck and Merrill, were unable to agree on a name for the city itself. They flipped a coin... and Manhattan Beach California was born.

The first downtown building was built by Merrill around 1901. It was a small frame building later used for city offices. The official date of incorporation of Manhattan Beach was December 7, 1912. Wooden planks were laid in the sand on Manhattan Avenue for vehicles, and also planks were laid along the Strand and side streets for pedestrians.

Two wooden piers were build in 1901, one at Center Street and one at Marine Avenue. The Center Street pier supported a wave motor to generate power for the Strand lighting system. Supposedly part of the wave motor lies buried in the sands at the shore end of the present pier.

The next pier was built on the same site and extended about 922 feet into the ocean. Engineer A.L. Harris developed the concept of the circular end for less exposure and damage to the pilings by the waves. The pier was completed and dedicated on July 5, 1920.

After World War II a large influx of people came as a result of the desirability of the area for year-round living. Servicemen visiting during the war returned to live here. The development of the defense industry brought many people to the South Bay to reside and work. Much of the land east of Sepulveda was developed to house the influx of people.