The formation of old streets has a long historical process. In the 20th year of Shaoxing in the Southern Song Dynasty (1 150), the Luxi people moved to Zhanggong, the ancestor of the world, with their families and relatives, and settled at the foot of Cangshan Mountain. After the waterfront Yangzhai Bridge (now Yangkantou area), children and grandchildren multiplied and the population flourished, and many other clans also moved here to settle down and develop. The scale of villages in the west of the lake is expanding day by day. Because the ancient Cangling Post Road passed through here, and the traffic was very backward and inconvenient at that time, people in the villages along the upper reaches of Haoxi River often tied bamboo, wood and other items into rows of rafts and went down Haoxi River to the west of the lake, where the water surface was open and the water flow was stable, and people dragged the drifting items to the shore for trading. Or go ashore to solve food and clothing, and then go to the city and the government.

The ancestors of the Lu people took advantage of the situation and opened a market in the front garden at the end of the Ming Dynasty. Over time, Huxi has gradually become an important post station on Cangling ancient road, a commodity circulation center in central and southern Zhejiang and a distribution center for some commodities. While Huxizhuang continues to expand from east to west, the old street also extends from east to west.

In the fifteenth year of Qing Qianlong, it moved down to the current market altar again because of the flood. In the 24th year of Jiaqing (18 19), Lu Zaiyang was ordered by his mother to build the "Yongji Bridge" (later renamed as "Xianmu Bridge") 200 meters up from the original site of Xitou Ancient Bridge in Ming Dynasty, running through the two banks and developing Huxi Old Street to the eastern end of Xianmu Bridge. During this period, Huzhen Old Street was formed. It can be seen from the Panorama of West Lake drawn by descendants of Lu in the 25th year of the Republic of China (1936) that at that time, Huzhen started from the Palace in the south (now Xinfan Market) and went to Houtangfan in the north, with the east-west street as the central axis, starting from the gate in the east and passing through the middle street in the west, and then going out to meet the street until Xianmu Bridge.