Gladstone was established by the New South Wales government in 1853–54 (prior to the separation of Queensland), possibly in an attempt to create a more centralised alternative to Brisbane as the capital of any future northern colony.

This, coupled with the great drought of 1900-02 and the 1903 opening of the Rockhampton extension of the railway which immediately deprived Gladstone of substantial port trade and passenger shipping, caused a crisis in business confidence in the town.

[1] Construction of the 1933–34 town hall, a long-needed project, was made possible by low interest loans and subsidised labour provided by the Queensland Government during the height of the economic depression of the 1930s.

[1] The new Gladstone Town Hall and Municipal Chambers was opened officially on Saturday 15 September 1934, by Hon Harry Bruce MLA, Minister for Public Works.

[3] For the occasion, the front of the building was garlanded with 40 International Signal Flags borrowed from the Pilot Station at Gatcombe Head.

The new Town Hall rapidly became the hub of community life, with a weekly baby clinic, "talkies" screened 3 times a week (canvas chairs were placed in the auditorium), balls, stage shows, ALP sponsored bingo, and community group meetings of all kinds.

[1] Within a decade of its opening, plans were being discussed to replace the Gladstone Town Hall and Municipal Chambers with a larger Civic Centre.

In 1966 work began on the upper floor of the Civic Centre, and the Gladstone Town Council met there for the first time on 18 December 1967.

The refurbishment necessitated the installation of "total environment control", filling-in of the proscenium arch over the stage, and removal of the internal stairs from the hall to the basement.

The Art Gallery and Museum is a single-storeyed masonry building, with a basement level, designed in a free classical style.

[1] The main entrance to the building is from Goodoon Street through a portico with Doric columns and an arched entablature with "TOWN HALL" in raised lettering.

This room has been lined so that the windows are covered, the proscenium arch has been removed and a wall placed between the former stage area and the hall.

[1] Gladstone Regional Art Gallery and Museum was listed on the Queensland Heritage Register on 7 July 1998 having satisfied the following criteria.

As one of a group of employment-generating public buildings erected in Gladstone during the interwar period, (including the 1929 Commonwealth Bank Building, the 1932 Post Office and the 1940–42 Court House), the former town hall is significant in illustrating a more positive impact of the interwar economic depression on regional Queensland.

The conversion into an art gallery and museum in 1984–85 necessitated some alterations, but the building remains sufficiently intact to be important in demonstrating the principal characteristics of a regional town hall and municipal chambers of the interwar period, designed in a classically derived style.

Located on a corner block in the main street of Gladstone, the building has strong streetscape presence and townscape value.