iver, to provide power. The Distillery was originally conceived as a plant to make flour, but the distillery business was much more popular. By 1837, the mill was producing more than 28,000 US gallons (110,000 L) of whiskey annually.
By 1840, the waterfront was completely taken over by government and merchant wharves. The Esplanade, a 100 feet (30 m)-wide road, was proposed, just south of Front Street, with new water lots made from cribbing and filling of the shore to the south. The waterfront was extended to a survey line from the point of the Gooderham windmill west to a point due east of the old Fort Rouille. Ostensibly for carriages and carts, the roadway eventually became primarily the route for rail lines in the central core. In exchange for 40 feet (12 m) of the Esplanade, the railways underwrote the infilling of the harbour. The Esplanade and infill project was complete by 1865. A section of The Esplanade from Yonge Street to Berkeley Street still exists as a roadway. The rail lines moved to a viaduct in the 20th century.
The first rail line to the harbour was the Ontario, Simcoe and Huron Railroad in 1853. The next rail line was the Grand Trunk, which underwrote the Esplanade project in exchange for an easement to enter the City. The Canadian Pacific Railway arrived in 1886, through the purchase of the Credit Valley Railway. Most of the area along the shoreline was connected to the railways. Manufacturers of products such as soap received raw materials via boat, produced the product at their location on the harbour, and distributed it via rail.
As well as cargo, the harbour also became a major passenger waypoint. By the 1880s, the harbour was handling 1,250,000 passengers annually through passenger steamship docks at the foot of Yonge Street. Passenger boats operated on Lake Ontario and the St. Lawrence River. Excursions to Niagara also departed from the Yonge Street docks.
The western channel's depth was found to be too shallow by 1906 when the steam barge Resolute sank outside the harbour during a storm. The barge was unable to shelter in the harbour. The Queen's Wharf area was rebuilt during the years of 1908 to 1911 by the federal government. A new western channel was dug 1,300 feet (400 m) to the south of the existing one. The existing channel could not be dredged to a lower depth as it was solid rock. The Queen's Wharf site became the eventual site of the Loblaws warehouse at the intersection of Bathurst Street and Fleet Street.
The 1910 Toronto Board of Trade proposal for the Ashbridge's Bay was for an industrial district for industrial offices and sites served by railway lines, public warehouses alongside docking facilities south of Keating Channel to the Eastern Gap and parkland/recreational strip at the south end.
In 1911, the Toronto Harbour Commission was created. The lands of the waterfront that were owned by the City of Toronto were transferred to the Commission to administer. In 1912, the Commission delivered its first plan for the harbour and the waterfront from the Humber River in the west, to Woodbine Avenue to the east. The Commission dredged the harbour to a depth of 24 feet (7.3 m) to match the new Welland Canal.
As the city of Toronto grew the northern shore of the bay was further altered by landfill, and has been moved approximately 500 meters south. After the Esplanade landfill, the second landfill project extended the shoreline south of today's Queens' Quay to the west of Yonge Street. The final infill on the north shore was in the 1950s, from Yonge Street east to the Don River, providing room for the Redpath Sugar Refinery, the Victory Soy Mills and several marine terminals.
In the 1920s, most of the low-lying marsh of Ashbridge's Bay was filled in to create Toronto's inner harbour area (with the small section to the east and the shipping channel the only reminder of the body of water). In the 1930s, the waters of Hanlan's Bay on the western point of the islands were infilled to create the Toronto Island Airport, now known as Billy Bishop Toronto City Airport.
By the time that the plans