At the time there were few Chinese migrants in Australia and the Caucasian resentment towards the small entrepreneurial group was growing, this resentment grew until the Lambing Flats Riot.

This resulted in the Australian White Policy, legislation was passed in 1901, this legislation restricted immigrants from working in Australia and "Asiatic and coloureds" from migrating into Australia. Restrictive conditions were placed in order to prevent them from entering Australia, the most famous and controversial of these was the Dictation Test, where the applicant would have to sit a dictation test in the language set by the overseeing officer. This test would often be set in a language the applicant was not yet familiar in, and the difficulty of this test was also set by the overseeing officer, allowing the test to be highly discriminatory. This policy was revised in 1958, which abolished the dictation test and avoided making references to race.

By the 1920s, Sydney's Chinatown migrated over to Campbell Street, currently the Capitol Theatre Site. When the wholesale markets such as Paddy¡¦s Market moved to their current site in the 1930's Chinatown then migrated along to Dixon and Hay Street

In 1966 the White Australia Policy was abolished and large investors from South East Asian were allowed into Australia. These investors then purchased properties along Dixon Street and in 1980, Dixon Street became Sydney¡¦s Official Chinatown after the Sydney City Council, Dixon Street property owners and business owners jointly raised funds to build the ceremonial archways, lions, pavilions and other features.

Modern day Sydney Chinatown plays host to a variety of stores and attractions, walking along Sussex and Dixon streets a line of cheap eateries and restaurants line your path. Boutique fashion stores on either side of you frame the many jewellery stores and the grocery shopping stores have peculiar vegetables and fruits not normally seen in others. Surrounding attractions include Star City Casino, Darling Harbour, Chinese Garden of Friendship Entertainment Centre, Monorail, and Capitol Theatre.