Hilbert space
The algebra of observables in quantum mechanics is naturally an algebra of operators defined on a Hilbert space, according to Werner Heisenberg's matrix mechanics formulation of quantum theory. Von Neumann began investigating operator algebras in the 1930s, as rings of operators on a Hilbert space. The kind of algebras studied by von Neumann and his contemporaries are now known as von Neumann algebras. In the 1940s, Israel Gelfand, Mark Naimark and Irving Segal gave a definition of a kind of operator algebras called C*-algebras that on the one hand made no reference to an underlying Hilbert space, and on the other extrapolated many of the useful features of the operator algebras that had previously been studied. The spectral theorem for self-adjoint operators in particular that underlies much of the existing Hilbert space theory was generalized to C*-algebras. These techniques are now basic in abstract harmonic analysis and representation theory.
Abelian von Neumann algebra
Though there is a theory for von Neumann algebras on non-separable Hilbert spaces (and indeed much of the general theory still holds in that case) the theory is considerably simpler for algebras on separable spaces and most applications to other areas of mathematics or physics only use separable Hilbert spaces. Note that if the measure spaces ("X", μ) is a standard measure space (that is "X" − "N" is a standard Borel space for some null set "N" and μ is a σ-finite measure) then "L"("X", μ) is separable.