The founders at the inaugural meeting in the Wellington Public Library on 15 May 1964 were actors Peter Bland, Tim Eliott and Martyn Sanderson, and restaurateur Harry Seresin.

Sanderson believed in a small professional company in Wellington performing challenging works in an intimate venue.

In 1973 Downstage supported the beginning of Playmarket, New Zealands agent for playwrights by allocating some staff time of Nonnita Rees plus office space.

[9] The first locally-written production, in 1966, was Father's Day a dark social comedy by Peter Bland starring Pat Evison as the eccentric mother with two pregnant daughters.

The set was in traverse designed by Raymond Boyce featuring a central sloping disc and the cast included Grant Tilley, Anne Flannery and Susan Wilson.

"[1][10] Wednesday to Come by Renée in 1984 directed by George Webby told a story of New Zealand's depression era through the lens of three generations of women.

[12][13] A number of plays started at BATS Theatre and then did shows at the Hannah Playhouse to accommodate demand and to reach a bigger and different Downstage audience.