The word is a wasei-eigo (Japanese-made English) term literally meaning "new half," implying a person who is "half man and half woman".

Historically, it specifically designated entertainers in Japan's mizu shōbai (water trade)—the world of night clubs, cabarets, and bars. japanese newhalfs

Newhalfs — Japanese

The word is a wasei-eigo (Japanese-made English) term literally meaning "new half," implying a person who is "half man and half woman".

Historically, it specifically designated entertainers in Japan's mizu shōbai (water trade)—the world of night clubs, cabarets, and bars.