The first section of the famous Hollywood Hotel, the first major hotel in Hollywood, was opened in 1902, by H. J. Whitley, the President of the Los Pacific Bolevard and Development Company of which he was a major shareholder. He was eager to sell residential lots among the lemon ranches then lining the foothills. Flanking the west side of Highland Avenue, the structure fronted on Prospect Avenue. Still a dusty, unpaved road, it was regularly graded and graveled.
Hollywood was incorporated as a municipality in 1903. Among the town ordinances was one prohibiting the sale of liquor except by pharmacists and one outlawing the driving of cattle through the streets in herds of more than two hundred. In 1904, a new trolley car track running from Los Angeles to Hollywood up Prospect Avenue was opened. The system was called "the Hollywood Boulevard." It cut travel time to and from Los Angeles drastically.
By 1910, because of an ongoing struggle to secure an adequate water supply, the townsmen voted for Hollywood to be annexed into the City of Los Angeles, as the water system of the growing city had opened the Los Angeles Aqueduct and was piping water down from the Owens River in the Owens Valley. Another reason for the vote was that Hollywood could have access to drainage through Los Angeles´ sewer system. With annexation, the name of Prospect Avenue was changed to Hollywood Boulevard and all the street numbers in the new district changed. For example, 100 Prospect Avenue, at Vermont Avenue, became 6400 Hollywood Boulevard; and 100 Cahuenga Boulevard, at Hollywood Boulevard, changed to 1700 Cahuenga Boulevard.