The idea of a local theatre group was born when Fisher attended a lecture by a professional actress named Kathryn Kennedy O'Connor who moved to New Mexico for health reasons in 1927.

The company presented its inaugural season in 1931, consisting of the three plays This Thing Called Love by Edwin J. Burke, Cradle Song by Gregorio Martínez Sierra, and Rain by John Colton.

[3][4] In 1932, ALT staged The Trial of Mary Dugan as a benefit to raise money for Vance to study in New York, helping her begin a successful career on Broadway and television.

The original building designed by famed southwestern architect, John Gaw Meem, was the first structure in Albuquerque to be built by the Works Progress Administration as part of President Franklin Roosevelt's "New Deal."

During Thomas's years as director, he brought many popular comedies, and a fair assortment of dramas as well, and he exposed Albuquerque audiences to some unusual fare as well, including the world premiere of David Madden's Cassandra Singing.