British Royal Navy slang dating from around the time of
World War I. A Pavement Fairy is the name for a prostitute, whore or woman of easy virtue. The pavement part comes from these women having 'beats' on the pavement of a particular street, whilst the fairy has
nothing to do with
homosexuality, but possibly derives from Cinderella's Fairy Godmother who makes wishes come true.
At one time Union Street, in Plymouth UK was notorious for the numbers of pavement fairies plying their trade to give solace to soldiers, sailors and Royal Marines. There's even a rude version of the Irish folk song 'The Spanish Lady' that mentions both Plymouth and a pavement fairy:
As I walked into Plymouth City,
Union Street it was late at night,
There did I see a pavement fairy
Washing her snatch in the pale moonlight,
First she washed it then she dried it
Over a fire of red hot coal
In all my life I ne'er did see
So much singed hair round a dirty great hole.