Through this project the gallery expanded and became a co-tenant in the building with the newly established Ararat Performing Arts Centre.

The Ararat Arts Activity Centre was opened on Thursday 26 April 1979 with a welcome by Ararat Mayor Cr W C Henning, opening remarks by the Hon T Austin, Minister of Public Works, and closing remarks by Eric Westbrook, Director, Ministry for the Arts.

Gunn Hayball Architects received the Victorian Architecture Medal in 1980 for their work on the project.

The last biennial in 1989 moved away from miniatures and focussing instead on critically engaged fibre art practice.

The gallery has an almost singular dedication to curating exhibitions which explore Australia’s recent historical fibre art history.

Notable exhibitions include ‘About Time: Australian Studio Tapestry 1975–2005’ (touring to five galleries, 2010–2012)), ‘Douglas Fuchs – Floating Forest: 30th anniversary exhibition’ (2012), Kate Just: The Knitted Works’ (2013), ‘Making Time: The Art of John Corbett 1974–2013 (2013), and ‘Slipstitch’, curated by Dr Belinda von Mengerson and presented in partnership with NETS Victoria (touring to five galleries, 2015–2017).