[2] British production company Granada TV approached Ray Davies in early January 1969, expressing interest in developing a film or play for television.

Development of Arthur occurred during a rough period for the band, due to the commercial failure of their previous album The Kinks Are the Village Green Preservation Society and the subsequent single, "Plastic Man", as well as the departure of founding member and bassist Pete Quaife.

[5] When an article in the New Musical Express mentioned Maple Oak, the band he had formed without the rest of the Kinks' knowledge, Davies unsuccessfully asked Quaife to return for the upcoming sessions of Arthur.

[6] Bassist John Dalton, who had briefly replaced Quaife when the latter had quit three years prior, was asked by drummer Mick Avory to rejoin the band.

[10] The Kinks played a few small gigs in England throughout the remainder of the month, but devoted most of their time to finishing Dave Davies' solo album.

[9] As Davies and Mitchell completed their script, the Arthur TV play began to crystallise, and British filmmaker Leslie Woodhead was assigned the role of director.

[3][9] In early October Ray Davies moved from Borehamwood back to his old family home on Fortis Green, in Muswell Hill, and travelled to Los Angeles, where he delivered the tapes to Reprise for Arthur's American release.

Roy Stonehouse was hired as a designer, and the casting was completed, but the show was cancelled at the last minute when the producer was unable to secure financial backing.

[17] The lead character in the album, the fictional Arthur Morgan—modelled after Anning—is a carpet layer whose family's plight in the opportunity-poor setting of post-war England is depicted.

The album set the stage for the Kinks' return to touring the United States in late 1969,[8] and paved the way for even greater commercial success with the hit song "Lola" in 1970.

[2] While the sessions for Arthur (Or the Decline and Fall of the British Empire) were nearing completion in June 1969, the track "Drivin'" was released as a single in the UK, backed with "Mindless Child of Motherhood".

The set featured various items, including a consumer's guide to the band's albums, a bag of "grass" from the "Daviesland village green", and an LP entitled Then, Now and Inbetween.

[28] Reprise considered seeding false stories in the press to create an "outlaw" image for the group as part of the campaign, including pieces about marijuana possession and income tax evasion.

[18] The album was packaged in a gatefold sleeve, and included a shaped insert depicting Queen Victoria (holding a house containing Arthur Morgan), with lyrics on the reverse.

"[29][31] Writing in his Consumer Guide column of The Village Voice, Robert Christgau gave the record a positive review, saying that although Ray Davies' lyrics could get "petulant and preachy at times", the album featured "excellent music and production".

[31] Disc & Music Echo commented that "Arthur works as a complete score because it is basic and simple and pleasing to the ear, and powerfully conjures up pictures in the eye.

"[23] Melody Maker seconded Mike Daly's comments in Rolling Stone, again calling it "Ray Davies' finest hour", and adding that it was "beautifully British to the core".

[23] Doug Hinman later commented on the album's reception in Britain: "In the British music press there [was] less celebration, and coverage [was] relatively routine, though everyone saw the rock opera angle.