It was established in 1842 to provide the Royal Navy with services for the design, development, inspection, testing and repair of compasses and certain other instruments.

He became responsible to the First Naval Lord for producing charts, 'Sailing Directions', 'Notices to Mariners', tide tables and light lists and for supplying chronometers, compasses and other scientific instruments to HM ships.

[4] Captain Edward Johnson led the project and appointed a retired Scottish Artillery Sergeant, James Nathaniel Brunton to live in the house and tend the observatory.

The Superintendent had his residence and office on the site (above which he maintained a small museum, containing 'the first water-compass, made by a Feversham optician, and [...] a number of compasses which have been on Polar expeditions, or round the world with the Challenger').

The simple wooden structure, around 15 ft (4.6 m) in diameter, stood in the central open square of the victualling establishment.

In 1895, Arthur Quiller-Couch described the operation of the observatory on a visit to the establishment:'Within the room are three stone pillars in line with a mark on a wall outside, and 110 feet away.

[1] Compasses for use on smaller vessels such as rowing boats, where less precision was required, were also tested on site, but using smaller-scale equipment in the Superintendent's office.

In 1917, the observatory was moved to Ditton Park near Slough and used the house and its immediate grounds when the compass branch was elevated to a department.