In the late 19th century, the city was divided into 3 different ethnic districts. Most of the commercial trading activities occurred along the Tonle Sap and Mekong rivers. It was reported in 1859 that a growing part of the city’s population was Chinese, mainly due to the Mekong river and South China Sea connection, which helped facilitate trade between China and Southeast Asia.
In 1865, 2 years after Cambodia was colonised by France, Phnom Penh was designated as the new capital and major developments quickly took off from there. The new Royal Palace was built using masonry structure and King Norodom hired a French contractor to build an additional 300 Chinese shophouses to accommodate for the city’s rapid population growth. This was when the shophouse concept was introduced to Cambodia.
In 1889, the city was divided into different districts based accordingly to ethnicity and profession. The French District was comprised of administrative offices, the Chinese District consisted of commercial shops, and the Khmer District was the local administrative area.
By this time, most of the present day road layouts were fixed and canals were newly constructed. To this day, some of the surviving buildings can still be found, sometimes abandoned and unpreserved.