Transfer Road was constructed in the third quarter of the 19th century. It follows the course of the Transfer Road Canal, a ditch that has since been obscured for much of the way.
Transfer Road was named to commemorate the transfer of the administration of the Straits Settlements from Madras to Singapore in 1867, given greater autonomy in the administration of the states.
In the 1950s and 60s Transfer Road was one of the places offering hotels to visitors to Penang. Among them include Embassy Hotel and Hong Aun Hotel.
Being at the fringe of the George Town World Heritage Site, Transfer Road is again a choice location for small to moderate size accommodations, with a number of hotels opening along the road in the past few years.