And before that, it was the site of one of 19th-century Sydney's grandest estates.

These days, the grandeur and the cocoa vapours have dissipated, and Abbotsford has become a quiet, residential harbourside pocket on the outer fringe of the Inner West region.

But in the past five years - inspired, perhaps, by the suburb's delicious past - a vibrant new food precinct has sprung up, leading some locals to christen Abbotsford the city's "new Little Italy".

The shopping village on Great North Road straddles the border between Abbotsford and the even-smaller suburb of Wareema directly to the south, and has become the default location for Abbotsford residents to eat, meet and shop.

"As an Italian, I can say that it does cater for everything that we would want," says Maurizio Mezzatesta, who moved to Abbotsford with his partner four years ago.

Mezzatesta singles out Trovatino cafe, Dolcetti pasticceria, the Italian-style steakhouse Bistecca & Co and the G2G deli/grocery as authentic favourites.

Decade-long resident Steve Cuda, a marketing consultant, agrees. "Trovatino's is an institution," he says. "And Dolcetti is our version of Papa's in Haberfield."

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Cuda and his partner, both of whom have Italian heritage, moved to Abbotsford before the cluster of shops developed, but they were drawn to the general vicinity by the Italian delis and cafes in neighbouring suburbs such as Five Dock and Haberfield.

"All that good stuff is still very much alive in the area," he says.

It's not clear exactly when Abbotsford became a magnet for Italian Australians. The suburb took on its current name when a wealthy settler, Sir Arthur Renwick, built a grand residence near the water and named it after poet Sir Walter Scott's residence in England.

Financial problems forced Renwick to sell the house and estate in 1904. In 1920, Nestle purchased it from its intermediate owner and built a sprawling factory there to produce chocolate and Milo. Historic Abbotsford House became an administration building.

When the factory closed in 1991, the site was sold to developers and Abbotsford House was moved in its entirety to a street nearby. It was sold in its new location in 1996 for $1.25 million and has not changed hands since.

Cuda's real-estate story is less glamorous: he and his partner purchased their first property, a 1970s apartment, in Abbotsford in 2007.

"It had a very seventies look and feel to it," he says. "The kitchen was green, the bathroom was brown and yellow ... So we gave it a complete refresh."

The couple is now selling the apartment. "But we're definitely remaining in the suburb," Cuda says. "We're temporarily renting a townhouse here until we find the right house in the area."

Mezzatesta is also staying put. He and his partner live in a house that he describes as "smack in the middle of Abbotsford" and that doubles as a studio for the couple's music business, Music Dojo, which provides individual tuition and school-holiday programs for local children.

"It's a quiet little nook," he says of the suburb. "And the fact that it's next to the wharf is the best.

"It's still really easy to get out of the area, which I like. It's a bit harder if you're driving or taking the bus, but the ferry is 25 minutes to the city, and it's a beautiful ferry ride."

And he says that, despite the Italian influence, the suburb feels culturally diverse, which he and his partner appreciate.

Jacki Williams of Warwick Williams Real Estate says lifestyle and affordability draw a broad range of buyers to Abbotsford.

"You've got your first home buyers; you've got downsizers from places like Strathfield and Concord or even farther west, Baulkham Hills and around there, coming closer into the city; and you've got families settling into 'forever homes', the big waterfront properties," she says.

"The local public school is incredibly popular."

Cuda says he's noticed more young families moving in. "If I look at the demographics of the people walking down the street today, it's families with children under 10," he says. "If I were to guess, I would say it's young couples who were living in the Balmain area and who have moved a suburb or two farther out."

The downside of Abbotsford's resurgence? "I have noticed an increase in traffic," Cuda says. "You notice on weekends that there's just more people in the area. Ten years ago, it was a bit more of a local secret."