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There are 14 Grey Streets in metropolitan Melbourne , but by far the best-known is Grey Street in St Kilda , once a grand residential street but now with a reputation as a centre of prostitution.
Grey Street runs south-east between Fitzroy and Barkly Streets. It lies within the original settlement area of the village of St Kilda, which was subdivided for land sales in As St Kilda grew into a wealthy and fashionable suburb during the second half of the 19th century, Grey St became lined with the mansions of Melbourne's prosperous mercantile class, attracted by the proximity of St Kilda beach and the hotels and restaurants of Fitzroy St and The Esplanade.
One of leading hotels of the era, the George, stands on the corner of Fitzroy and Grey Sts. After decades of decline, it has recently been refurbished and its upper floors converted to apartments.
Other mansions have been converted into apartments or backpackers' hostels. Another well-known landmark on the street in the 19th century was the St Kilda Coffee Palace , now a backpackers' hostel. During the 20th century the social status of St Kilda declined and the wealthy moved away from Grey Street. Since the s it has become notorious as one of Melbourne's main areas of street prostitution.
Female prostitutes operate day and night on the corners of Dalgety "hooker's corner" , Robe and Barkly Streets; and customers in cars, known locally as "gutter crawlers", are regarded by local residents as a major nuisance.