The story of Jesselton, now Kota Kinabalu or in short form KK began well before its official founding in 1899. The excellent harbour of Gaya is best mentioned as "..one of the best and most completely land-locked harbours on this coast..." (Sir Edward Belcher, 1846). Also, Spencer St. John in 1862 in his book Life in the Forest of the Far East commenetd that Gaya was the most important harbour in Borneo "...from its commanding position in the China seas and fro its great security."
In The Exploration of Mt. Kinabalu, John Whitehead in 1885 describes the first settlement on Gaya Island established by the British North Borneo Chartered Company. It was not very impressive "...hundred yeards of rickety nebong pier..." and the "...village consists of a few Chinese shops, built in a row facing the sea on a few acres of flat land, about the onlylevel space in the island. But i do not think that 'Town lots' in Pulo Gaya would be a successful speculation, as a year later when i visited the place the shops looked decidedly worse for wear and had not increased in number. At one time the Chinese opened a small sago factory, but they shortly abandoned this businedd. The Governmenet buildings are perched on top of a hill and are built of the usual materials employed in this country, attaps and kajang...Gaya is, I should think a most unhealthy place; it is certainly a very hot one, being sheltered from most winds; if a good town site could be chosen on the mainland where steamers could touch, it would be a good move to abandon Gaya for more reasons than its unhealthy position."
The island trading station at Gaya was founded in 1883. The Residency was sited on the side of the ridge while on the shore there was an iron water pump for the town's water needs. A small resevoir, concrete lined, was located at the base of the ridge to collect water
The settlement at Gaya grew slowly but surely despite the lack of water and hot, humid weather. This sleepy hollow was to be rudely awakened by an event which spelled its fiery destruction in 1897.
The picture uploaded shown a Gaya Bay, 1881 by Capt. The Hon. Foley C.P. Vereker.