Custom House Lane is located between King and William streets, extending from Flinders Street to Flinders Lane. Formerly Murphys Lane (from 1869), it was renamed in 1876 after the Customs House, located at 400 Flinders Street. Built in the late 1850s, the building has been home to the Immigration Museum since 1998.
In 1895, Custom House Lane was alive with activity. Both the Royal Highlander Hotel and the Otago Hotel were located here. Other activities located on the lane included the Church of England Mission, the Victorian Sack Warehouse, the French Drug Company, and a Chinese laundry.