Okay so I looked into it guys. Greenwich Village is located in Manhattan, New York. In the 1910's (season 15 of murdoch is set in 1909) it was regarded as "America’s bohemia." The people who lived in the village were described as "radicals" who "rejected traditional structured socialization, preferring instead bohemian informality." Basically, they were rather irregular and artsy. It attracted people who wanted to live like this.
That's what it was when Jack moved there. But it became a giant LGBT capital. After WWI many people moved into larger cities. The Gays™ were described by a newspaper as "short-haired women and long-haired men."
Then the US government introduced a prohibition on alcohol sales and import from 1920-1933 as a sort of experiment to see if it lowered crime, corruption and other social issues, which ultimately failed. However, during this time police started doing raids because of the sheer number of establishments. They weren't able to police them all. Some of the raids were successful, so places like Eve's Hangout (a lesbian nightclub) were closed and their owners punished.
Then in the 1950's a bunch of poets wrote about "the evils of the social organization at the time, glorifying anarchy, drugs, and hedonistic pleasures over unquestioning social compliance, consumerism, and closed mindedness." Some of them also wrote about homosexuality, like Allen Ginsberg and William S. Burroughs. This all created a community that consisted mostly of open-minded liberals and people looking for community.
THEN (lots of thens lol) in the 1960's the mayor tried to get rid of every gay bar there ever could be. He was worried that they would cast a bad light on his city if countries to came for the 1964 World Fair saw a bunch o' hippies and homos. The city took away liquor licenses and a bunch of raids were conducted. Police often tried to catch gay men by posing as a gay man, flirting with them and once they had the evidence they'd arrest said man for solicitation (such as our 2nd favorite station house 4 detective in season 1??) According to wikipedia, "One story in the New York Post described an arrest in a gym locker room, where the officer grabbed his crotch, moaning, and a man who asked him if he was all right was arrested."
In 1967, 2 notorious LGBT establishments were opened; the Oscar Wilde Bookshop, founded by Craig Rodwell, and Stonewall Inn was bought by Mafioso Fat Tony Lauria and turned into a gay bar. It was surprisingly common for crime families to own gay bars. They'd often overcharge watered-down drinks, but they'd also provide safe-havens and pay off police to prevent alcohol raids. It was the place of the Stonewall Riots, one of the first and biggest uprisings against LGBT oppression.
It was a giant LGBT capitol, and still is. Idk how to conclude this but basically, it was a rather gay village. Also whoever wrote the wikipedia page is my hero.