In the mid 19th century the village of Halepa started to develop. It was located east of the city and outside of the defense lines. The area holds an important place in the history of Crete. In October 1878 the "Treaty of Halepa" was signed between the Ottomans and the Cretans. This treaty granted partial autonomy to Crete.
Halepa Street, the main artery outside of the wall (today called E. Venizelos Street), runs eastward from Chania. It is well kept and densely planted with blue Acacia trees provided by the Agricultural Federation of Georgioupoli. The road ended at the wealthy, aristocratic suburb and vacation spot of well-to-do Chania residents, Halepa, which was considered a miniature Europe.
There were many beautiful and luxurious buildings in Halepa, including the Consulates of the Great Powers of the time. There was also the Saint Joseph School where the nuns taught French and etiquette to the daughters of wealthy families. Within the bloom filled garden of the school was the elegant little church of Saint Magdalini.