In 1851, Lan-tian Lin and his family settled down in Today's Dadaocheng. They built three houses in the Southern Min style. In 1859, Xia-hai City-God Temple in Taipei was completed. In 1869, John Dodd, an English merchant, set up tea processing factories in the area and started to sell Formosa tea to the world. Because of the tea business, this area flourished and many foreigners decided to establish their companies and consulates here.

In 1895, Japanese rulers re-designed the area in western styles. The refurbished streets were filled with luxurious buildings, emanating European ambiance. No sooner had the Yongleding Market been set up there than it became a trading spot for textiles. In fact, various important businesses were simultaneously thriving. Currently, several original business clusters remain active, such as tea, Chinese medicine, and fabrics. The historic buildings have been restored progressively, thanks to projects for restoring and conserving historic buildings at Dadaocheng. Interestingly enough, in such a traditional area, creative shops, designer's studios, and coffee shops have been springing up recently. The mixture of traditional and innovative shops has transformed this area. Undoubtedly, Dadaochen has been and will be one of the most important places in Taiwan's history and culture.