Lanikai neighborhood name was changed from Ka'ohao during development in the 1920's with the beleif that it meant "heavenly sea". However that is english word order and the name translates as "sea heaven or marine heaven". The area near Po'opo'o gulch was once a place where women would come together while the men practiced for war. Near the entrance to Lanikai was once a heiau that hosted special ceremonies such as the birth of high chief Kuali'i.

Lanikai Subwatershed
is the smallest subwatershed covering a total of 309 acres of which 197 is zoned residential. There are no streams and surface runoff is collected through 17 storm drains that flow out through three concrete channels, They all empty directly into the waters ofKailua Bay. The home expansion in this area has increased the impervious cover in this watershed to 47% which is is almost half of the watershed area.