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William Charles Lunalilo was born on January 31, 1835 in a two-story house made of coral brick, an area known as Pohukaina, now part the grounds of the `Iolani Palace in Honolulu. His mother was High Chiefess Miriam Auhea Kekauluohi (later styled as Ka`ahumanu III) and his father was High Chief Charles Kana`ina. He was grandnephew of Kamehameha I by blood and the monarch's stepson by marriage to his mother. His grandmother was Kalakua Kaheiheimalie, sister of Kamehameha's favorite wife, Queen Ka`ahumanu.

When Lunalilo assumed the duties of the king, a huge change in the government's policy began to form. His predecessor, Kamehameha V, had spent his reign increasing the powers of his office and trying to restore the absolute monarchy of his grandfather, Kamehameha I. Lunalilo, however, spent his reign trying to make the Hawaiian government more democratic. He started by writing to the legislature, recommending that the constitution be amended. He wanted to undo some changes that his predecessor had made when he enacted the 1864 Constitution.  For example, the Kingdom legislature prior to 1864 met in two houses: The House of Nobles and the House of Representatives. The members of the House of Nobles were appointed by the King and the Representatives were elected by popular vote. Lunalilo served in the House of Nobles from 1863 through 1872. Under King Kamehameha V, the two houses of legislature were combined into one. Lunalilo wished to restore the bicameral legislature. He also wanted to add a provision to the constitution that required the king to include a written explanation to accompany any veto by the king. He wanted cabinet ministers to be heard in the House of Representatives.  The King also wanted to improve Hawaii's economic situation. The Kingdom was in an economic depression, with the whaling industry rapidly declining. Commerce groups asked the king to look at sugar to improve the economy and recommended that a treaty be drawn with the United States to allow Hawaiian sugar to enter the nation tax-free. To make such a treaty, many thought that the Kingdom would have to offer the Pearl Harbor area to the United States in exchange. There was much controversy over this, with both the public and in the legislature. When Lunalilo saw this opposition, he dropped the proposal.  During Lunalilo's reign, a mutiny took place in the small Hawaiian army. Some members of the army revolted against the drillmaster and the adjutant general. The king interviewed the troops involved in the mutiny and he persuaded them to lay down their arms. Following this, the king disbanded the army. From that point on, the Kingdom had no armed forces until King Kalakaua restored them.
Lunalilo