Olowalu , Hawaii Olowalu is a community on the west side of the island of Maui in the state of Hawaii . It is located about south of Lahaina on the Honoapiilani Highway . It sustained a large population , governed by the high chieftess Kalola , daughter of Maui ruler Kekaulike , and grandmother of Keopuolani . It was home to a traditional farming community until the arrival of the Europeans , who replaced it with a sugarcane plantation . The massacre described below , as well as the labor - hungry sandalwood trade , contributed to the site ' s decline . A substantial real estate development is under consideration for the area . The area is home to one of Hawaii ' s most unique reefs . Puu Honua . From ancient times , Olowalu was considered a place of refuge , or puu honua , by Hawaiians . Persons pursued for committing an offense against a family group or an ali ' i ( royal ) were untouchable once they stepped inside its borders . Violating sanctuary was punishable by death . For Pacific Island cultures , maintaining a peaceful order was a deep cultural tenet . For people on Maui , Olowalu created an interval of space and time to resolve disputes . Massacre . In 1789 , Captain Simon Metcalfe set out on a maritime fur trading mission with two ships : the large " Eleanora " , and the tender " Fair American " , a schooner under command of his son Thomas Humphrey Metcalfe . The " Fair American " was captured by the Spanish during the Nootka Crisis and taken to Mexico , but quickly released . The Metcalfes had earlier agreed to rendezvous in the Hawaiian Islands at Kealakekua Bay . The " Eleanora " had arrived by January 1790 , and met chief Kameeiamoku who boarded the ship to welcome them . Something he did must have offended Simon Metcalfe , who had the chief flogged . This was to have severe consequences later . The " Eleanora " then sailed north to the island of Maui to trade and resupply . One night a small boat was stolen and the night watchman was killed . Captain Metcalfe fired his cannons into the village , and captured a few Hawaiians who told him the boat was taken by people from the village of Olowalu . He sailed to Olowalu but found that boat had been broken up for its nails . Nails were treasured in ancient Hawaii , which lacked metal smelting technology . Metcalfe invited the villagers to meet the ship , indicating he wanted to trade with them . However , he had all the cannons loaded and ready on the side where he directed the canoes to approach . They opened fire , killing about one hundred Hawaiians , and wounded many others . About five or six weeks later the " Fair American " arrived at the Island of Hawaii where Kameeiamoku was waiting at Kaūpūlehu . The schooner ' s crew of five were easily overwhelmed and four were killed , including Thomas Metcalfe . The lone survivor was Isaac Davis . King Kamehameha I found out about the incident when another sailor , John Young , was captured by Kamehameha ' s men when he came ashore from the " Eleanora " to inquire about the " Fair American " . Kamehameha decided to spare the lives of Davis and Young , who became valued military advisors during his subsequent battles and negotiations with later visitors . The musket s of the " Fair American " were salvaged and the schooner refloated . Simon Metcalfe eventually left the island without realizing that he had indirectly caused his own son ' s death . Agriculture . Historically , Traditional Hawaiian planters filled these arable lands or kula with food and material crops . Olowalu was known for dry land taro and luxuriant shady breadfruit groves . Other crops such as sweet potato and plants that produced useful materials for clothing , shelter and transport , such as kukui , wauke , ' olona , pili and naio were also plentiful . A meandering stream and network of irrigation ditches nourished these crops . Throughout most of the 19th and 20th centuries , the area was farmed for sugarcane and a sugar mill operated there . Geography . The top of the Olowalu ahupuaa on Pu ' u Kukui reaches feet . Its boundaries trace downhill between LThau Mountain on the north and LThau ' Ula Mountain on the south . Olowalu Valley and ' Iao Valley were linked by an ancient trail until landslides covered the summit . Olowalu Valley opens up to a fan - shaped alluvial plain . When the Olowalu hills were cleared of sandalwood and hardwoods , Olowalu Valley became a much dryer environment , from mountains to shore . Reforestation of LThau with sandalwood and ' ohi ' a lehua is a major long - range goal of the OCR , and a huge undertaking requiring partnership with the Hawaii Department of Land and Natural Resources ( DLNR ) . Increased condensation drip in the high forest , added to conservation methods on the kula , are an opportunity to restore past moisture levels to Olowalu Valley . Every activity in an ahupua ' a was carried out within the context ofa spiritual and cultural belief system that maintained harmony , balance , and peace for both seen and unseen life forms of all creation . Restoring the OCR is a foundation for bringing the concept of sanctuary back into present day culture , and redeeming the powerful history of Olowalu as a functioning pu ' uhonua . Cultural reserve . Olowalu Cultural Reserve ( OCR ) was founded in 1999 as a community - based , non - profit organization to support and promote the revitalization of traditional Hawaiian culture , restoring native habitat , protecting historic and cultural sites and providing educational experiences to students , residents and visitors . In 2006 OCR began restoring 74 acres from Olowalu Valley to the ocean along Olowalu Stream . OCR is restoring the former irrigation systems and l0is for cultivating taro and other traditional . It is also creating an educational and cultural puuhonua or sanctuary . Olowalu Town . The community is sparsely inhabited today . Coordinates are . A planned community called " Olowalu Town " was announced in 2005 , but as of 2012 had not been constructed . Plans called for constructing 1 , 500 housing units , a shopping area , relocating the current highway and installing related infrastructure . On August 3 the Maui County Council voted 7 - 1 to incorporate Olowalu ( previously designated " Agricultural " ) within the " urban growth boundary " of the Maui Island Plan . The development is controversial because it is adjacent to one of Hawaii ' s healthiest and most unusual coral reef systems . The sheltered reef features large coral heads that are estimated to be hundreds of years old , as well as a rare manta ray cleaning station and Blacktip reef shark nursery .