By the time Culver City was incorporated in 1917, Culver had married actress Lillian Roberts and was immersed in the development and growth of his new city. He helped Ince acquire property for his second studio in 1919, again on Washington Boulevard. Both studios Ince built are still operating today. The same year, another filmmaker moved his company, Hal Roach Studios, often called the Laugh Factory to the World, to Culver City. At that time, there were also a number of small studios like Willat Studios located in the town.

By the 1920s, the little town began to spread out from its early 1.2 square miles around Main Street, the first commercial district. In 1924, Culver built his "skyscraper" six-story Hotel Hunt. It would become the home of the "munchkins" when THE WIZARD OF OZ was filmed in the late 1930's.

During Prohibition in the 1920's and '30's, the city became home to a proliferation of nightclubs where gambling was prevalent and liquor flowed freely. One of the most famous locations was Frank Sebastian's Cotton Club, where local resident Louis Armstrong played his music along with other greats like Lionel Hampton.

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