[2] The Colonial Theater stands near the northern end of Water Street, Augusta's principal commercial downtown thoroughfare.

The interior of the retains a significant amount of original material, but has deteriorated in a number of places due to damage by water and wildlife that has gained entry in its long period of vacancy.

The building was extensively damaged by fire in 1926, and rebuilt, making modest alterations that accentuated the emerging Art Deco features.

The theater's early history included the showing of silent movies with live orchestral accompaniment; the stage was eventually extended over the orchestra pit.

It was the site that premiered silent films produced by Maine native Holman Francis Day (now apparently lost).