The Hamidiye Waterway was constructed due to the pollution rate of the existing water lines in Istanbul, combined with shortage. Sultan Abdulhamid II established various commissions to deal with the issue: existing waterways were repaired; Kâğıthane's existing lines were reinforced, but they were damaged by heavy rainfall in 1897. In 1899, the Balaban line (to Taksim) flooded and destroyed Kâğıthane's water infrastructure. To ensure a secure supply to Beyoğlu, a new water line was needed (Sönmezer & Şahin, 2011, p. 600).

After a survey by the commission between 1898-1899, construction work began. The project was led by Hulusi Bey.