Reconstruction and Rehabilitation
Shortly after the war was over, the Philippines was granted her independence. Olongapo was one of the principal navy bases retained by the United States. The Navy started to rebuild the town right after the hostilities ceased. Olongapo however was built on a new completely undeveloped site a couple of miles north of its former site. The prewar town site became a part of the Naval Station.
The first few years after the war were extremely hard on the new town. Starting from scratch, everything in the new Olongapo was in a deplorable state. There was no electric power and no drainage system. The water supply and sanitation facilities were inadequate. Olongapo streets were unpaved—they were dusty during the dry season and were stretches of mud and slush when the rains came.
Gradually Olongapo evolved into a better community: new business concerns were established; housing projects were planned, civic facilities were restored. The development of the Reservation has been particularly rapid during the past two years. The new building constructions recently undertaken by the Reservation include: a new ice plant, a high school, two elementary schools, two bridges, and a public library. Two housing projects at Kalaklan and Saluysoy areas are at present being developed. Within a couple of months, the Reservation plans to start laying down a new set of water main lines to replaced the obsolete lines set up in 1908.
Due to the Korean War, U.S. spent over $170 million to convert the base into the homeport of her Navy‘s Seventh Fleet, developing the Cubi Naval Air Station as the largest U.S installation of its kind in Asia. Naval authorities relocated the residence from the area of the former Public Works Center area to what is now the hub of Olongapo – along what is now known as Rizal Avenue and Ramon Magsaysay Drive, and in the Barangays New Asinan and New Kalalake areas. Zoning of Olongapo was patterned after the American setup where streets are constructed along straight lines, both hori-zontally and vertically. The very considerable program of construction of facilities in the Olongapo and Subic Bay area brought about growth and prosperity to Olongapo. By 1956, migrants from nearby towns and provinces had swelled the population to 39,180.