From Wikipedia: "The record reached number 2 on the British charts in mid 1967 (it failed to dislodge the Tremeloes' "Silence Is Golden" from the number 1 position). It was also a top 10 hit in Australia, New Zealand and most of Europe. In North America, although "Waterloo Sunset" was released as a single it was not a hit, as it completely failed to chart. As a result, while "Waterloo Sunset" is well-known amongst Kinks fans and anglophile music fans, it is not necessarily a song widely known to the general public in the US or Canada.
"Davies considered the song a professional milestone, where he managed to blend the commercial demands of a hit single with his own highly personal style of narrative songwriting. The elaborate production was the first Kinks recording produced solely by Davies, without longtime producer Shel Talmy. In subsequent arguments with Kinks management over the direction of the band, Davies would say "I've done 'Waterloo Sunset', now I want to do something else".
"In 2010 Ray Davies stated the song was originally entitled 'Liverpool Sunset'. In an interview with the Liverpool Echo he explained 'Liverpool is my favourite city, and the song was originally called Liverpool Sunset. I was inspired by Merseybeat. I'd fallen in love with Liverpool by that point. On every tour, that was the best reception. We played The Cavern, all those old places, and I couldn't get enough of it. I had a load of mates in bands up there, and that sound – not The Beatles but Merseybeat – that was unbelievable. It used to inspire me every time. So I wrote Liverpool Sunset. Later it got changed to Waterloo Sunset, but there's still that play on words with Waterloo. London was home, I'd grown up there, but I like to think I could be an adopted Scouser. My heart is definitely there.' "