From Wikipedia:
Old Town owes its name to the fact that it was the location of the original settlement called "Tacoma". In 1865, Job Carr built a cabin near the shore in anticipation of future land speculation due to the construction of the Transcontinental Railroad. The replica of his cabin is built a few hundred yards south of its original site, which is marked by a plaque. Old Town was sustained in its early days by fishing and lumber mills.
Old Town was originally a separate community from what is now downtown Tacoma, which was at first called "New Tacoma" before the two communities merged into one.
Today the area features an historical park and a range of restaurants and shops. The area is sometimes called Ruston Way, although the Ruston Way waterside walk spans far beyond the accepted bounds of Old Tacoma.