In 1890, this land was again set aside and would become in 1897, the "Victoria Esplanade". By 1877, when the Borough Council came into existence, Palmerston North was an isolated village in the midst of the native forest that covered inland Manawatu. By 1878, the population was approximately 800 people and sawmilling was the main industry of the district. The arrival of the railway in 1886 saw an increase in the speed of growth and the town was at the centre of a lucrative agricultural district. The opening of the nearby Longburn Freezing Works provided employment, while the Borough Council instigated more infrastructural schemes such as the sewerage system. The Railway through the Manawatu Gorge to Napier was completed in 1891. In 1893, Rangitāne sold the Hokowhitu block, increasing the area of land available for settlement. In the same year, the Public Hospital opened in a wooden building on Terrace Street (now Ruahine Street). The hospital required significant fundraising. At the end of the decade, the Boer War broke out in South Africa and men from Palmerston North were among the volunteers. By 1900 the population had reached 6,000. In the 1910s Palmerston North's growth was steady. The population in 1911 about 10,991 (excluding Māori). The city was affected by World War I, with Awapuni Racecourse being used as an army training camp in 1914. During the course of the war, the Borough Council renamed all German-sounding and foreign street names. When the war finished in 1918, celebrations were delayed due to the Influenza epidemic. In 1930, the population reached the 20,000 threshold and Palmerston North was officially proclaimed a city, the 7th in New Zealand. Development was slow due to the great depression and World War II. An airport was established at Milson in 1936, which is now Palmerston North Airport. From 1938, the First Labour government (1935–1949) initiated state housing programmes in West End (Savage Crescent precinct) and Roslyn. In 1941, the Manawatu River flooded again, having last flooded in 1902. Large parts of Hokowhitu and Awapuni were underwater, with residents evacuating to higher ground (peaked at 5.8m). In 1940 the Māori Battalion was formed in Palmerston North and trained at the Showgrounds (now Arena Manawatu). In 1942, Linton Army Camp was established. After the war, the city's growth was rapid.