The portion of the Marcy-Holmes neighborhood located west of Interstate 35W is one of the oldest settled areas in Minneapolis, with roots stretching back to the early 1850s. This area was originally part of the city of St. Anthony, which predated Minneapolis and was centered around the east side of St. Anthony Falls. Due to its proximity to the falls and the Mississippi River, the western edge of Marcy-Holmes quickly developed into a dense and vibrant part of the city, characterized by a mix of residential buildings, boarding houses, churches, and small businesses. By the late 19th century, the area was home to a diverse population, including immigrant laborers working in the nearby mills and factories.

As Minneapolis industrialized, the western Marcy-Holmes area experienced steady growth and urbanization. Streetcars connected it to downtown and the University of Minnesota, making it a desirable location for both working-class families and students. Architecturally, the area saw the construction of distinctive brick walk-ups, early apartment buildings, and elegant single-family homes, many of which still stand today. Dinkytown, located in the northwest corner of the neighborhood, began to emerge in the early 20th century as a small but influential commercial district that catered to students and locals alike—eventually becoming a cultural hub during the countercultural movements of the 1960s and '70s.

In the postwar period, western Marcy-Holmes faced pressures from highway construction, urban renewal, and changing demographics. The construction of I-35W in the 1960s effectively split the neighborhood, disrupting long-standing residential patterns and displacing homes and businesses. Despite these challenges, the area retained its character as a dynamic mix of student life, longtime residents, and local institutions. In recent decades, renewed interest in urban living has brought reinvestment, preservation efforts, and new development to this historically rich part of the city. Today, western Marcy-Holmes continues to balance its past and future, serving as a gateway between the University, the riverfront, and the broader city.