The Pālolo valley was originally part of the Waikīkī ahupua‘a and contributed kalo, or taro lo‘i, as well as forest products to other ‘ili within the region. At upper elevations the stream carried the name of it’s ‘ili, Pālolo, but at lower elevations after merging and dividing it carried a different name as it entered the ocean, Kuekaunahi. Originally, Kuekaunahi stream entered the ocean on the eastern end of Waikīkī, near the current intersection of ‘Ōhua Ave. and Kalākaua Ave.

As the wetland of Waikīkī became urbanized, problems with surface water and drainage rapidly arose. In the 1920’s the Ala Wai canal was built in an effort to address this issue. The construction of the canal resulted in the filling in of many ponds and irrigated agriculture fields located in the Waikīkī area as well as the channelization and divergence of the natural paths of the streams that feed the natural wetland. Today, rather than entering the ocean the Pālolo/Kuekaunahi stream joins with Mānoa Stream and is released into the Ala Wai via a drainage canal.