Draper and hotelier Edward Mulcahy M.H.A[6] built a timber hotel called the Royal Exchange on the site of an abandoned silver and lead mine in 1882.

The destruction of the Royal Exchange and his personal loss of £5,000 was strong in Mulcahy's mind, so the new building was constructed of brick, the first of which were being made at that time in Zeehan by resident John Connor.

[2] The Gaiety was used for regular touring company performances by J.C. Williamson Ltd, as well as live music, bioscopes, films, and sporting events such as wrestling[10] and gymnastics.

A newly digitised version by the National Film and Sound Archive was projected at the Gaiety as part of the Ten Days on the Island festival in 2021.

[6] In 2000, Carlene Vickers from "Friends of the Gaiety" became a Local Hero finalist in the Tasmanian Australian of the Year Awards when the society managed to raise $120,000 for restoration works.

[26] Since 2011, a reconstruction of Louise Lovely and Wilton Welch's lost film Jewelled Nights, which was shot near Zeehan, screens daily alongside The Story of the Kelly Gang and The Sign of the Cross.

[28] The reconstructed film runs for 17 minutes and consists of original footage, outtakes, production stills from nearby Savage River, as well as animations to reimagine the story.