It was founded as Factory Theatre Lab in 1970 by Ken Gass and Frank Trotz, and it was run for almost 20 years by Dian English.

The original house was constructed in a classic Queen Anne Gothic design for the prominent Toronto merchant John Mulvey in 1869.

The house’s architectural features include: In 1909, the property was sold to the Roman Catholic Church, Parish of St. Mary, and was used as their Arts and Literary Centre.

In 1977, Gass's play, Winter Offensive aroused widespread criticism because of what was regarded as its gratuitous depiction of sex and violence amongst the upper echelons of the Nazi party.

Other notable works included Crossing Over by Neil Munro, The Rez Sisters by Tomson Highway, Rick Mercer's one-man show, Robert Lepage's The Dragon's Trilogy, and The Kids in the Hall.

The theatre had hit a rough patch financially at this point, and there was widespread concern that it might permanently close.

His decision to perform all six of the plays in George F. Walker's Suburban Motel as a full season brought the theatre a remarkably swift return to popularity, relevance, and financial prosperity.

[2] Nina Lee Aquino and Nigel Shawn Williams were named the new artistic directors in late 2012.