Queen Matilda, the wife of King Stephen, founded a hospital for the poor in the 12th century on 13 acres of land belonging to the Priory of Holy Trinity, Algate in the Portsoken Ward of the City of London. A Charter of Privileges granted in 1442 removed the residents from the civil jurisdiction of the City and the ecclesiastical jurisdiction of the Bishops of London. St. Katharine's became a Royal Peculiar with its own ecclesiastical court and in civil matters responsible only to the Master and Lord Chancellor. Trades and industries could therefore develop free from the jealously guarded rights of the City and its guilds.
By the end of the 16th century large numbers of foreigners,especially Flemish weavers and brewers, settled in the area, attracted by its nearness to the City and the absence of restrictions onimmigrants.The few open spaces left were soon occupied and wharves built along the riverside.
The area was fairly well kept and comparatively healthy, but the promoters of the scheme to convert the area into wet docks described it as a collection of hovels inhabited by the lowest sections of the community. The Act to establish St. Katharine's Dock was passed in1825 and on 30th October 1825 the church was packed for the final service. Within a year all the buildings were demolished and the hospital of St. Katharine moved to Regent's Park.