Hanel Street evolved over several decades with various subdivisions, the first being offered for sale in 1883.
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Initially having a length just over half-a-kilometre, in 1905 Hanel Street was extended northwards to Wilson Street (once the main entry street into Albury) and bound by Kenilworth Street to the south.
The street was created in stages out of Suburban Allotments 17-18, and Allotments 3-4 Section 97 which were originally owned in the early 1850s by William Wise, Isaac Butt, WA MacDonogh, and George Adams.
By 1865 Henry Rau, one of Albury's first winegrowers, owned Suburban Allotment 17, and when he died in June 1872 the land was subdivided with various parts left to his daughters.
In 1883 a daughter Marie Rau, was selling lots fronting Schubach, Rau and Hanel streets.
Three years later an advertisement in the Border Post advised of an auction on behalf of Phillip Rau of 23 allotments, with nine having frontage to Hanel Street.
An earlier purchaser of lots in Hanel Street was English-born Alfred Chant, owner of the Federal Hotel in Townsend Street.
In 1885, Chant was selling his lots, the auctioneer describing them as the "most beautiful sites in the town, commanding as they do noble and extensive views of the Murray Valley and the adjacent mountains."
The area was still semi-rural as late as 1908 and Mr Jabez Stanton complained of straying stock in the locality.
Other residents in Hanel Street at the time included Mary Andrews, Thomas Bowden, Rev RM Brett, Mrs Peter Eagan, George Grant, John Hawkins, Thomas Lowden, Peter Tully and Frederick Wilson.
In September 1910, a syndicate of local business people, bought the 25 acre Higgins' Paddock (later known as Kenilworth Estate) to the southern end of Hanel Street.
Six months later 32 lots in a subdivision of this land were offered for sale, 16 with frontage to Hanel Street. In mid-1912 the Border Morning Mail reported "that the sale of lots was difficult."
In 1920, 10 acres of the Kenilworth Estate were purchased by the Department of Housing, and an amended plan of subdivision of this area was prepared by John Sulman.
In the same year, the War Service Homes Commission forwarded plans suggesting use of Kenilworth Estate for soldiers' homes.
While plans for the department's housing scheme were approved, the scheme never eventuated, and in July 1924 the land was being offered for sale.
