High Quality Content by WIKIPEDIA articles! Lanai City is a census-designated place (CDP) on the island of Lanai, in Maui County, Hawaii, United States. The population was 3,164 at the 2000 census. Because of the island of Lanai`s small population, Lanai City functions as the island`s main commerce and business area. Many of the island`s restaurants and shops can be found in the town square that surrounds Dole Park.