It formed part of a broader programme of improvements, which also included a new market hall, and, after being authorised by act of parliament in 1868,[2] was facilitated by diverting the River Lemon into a culvert.

[1] The volume of corn changing hands in the town declined significantly in the wake of the Great Depression of British Agriculture in the late 19th century,[6] and, even before it opened, the local board decided to convert the building for public use as the "Alexandra Hall".

It was named after Princess Alexandra of Denmark who had requested large amounts of Devon lace for the dress she wore at her wedding to the Prince of Wales in March 1863.

The building was further enhanced by the addition of curved sections with a stucco finish, on either side of the tower, in the early 20th century, and the windows were filled to allow silent films to be shown in 1920.

[8] In January 2022, Teignbridge District Council announced proposals to redevelop Newton Abbot town centre:[11] the plans, which would have involved the demolition of the interior of the Alexandra Theatre to create an enlarged market hall, met with strong opposition from local people.