In 1888, James Halliday bought a 4.0-hectare (10-acre) block of land on what would become King William Street.

The house is said to have been constructed by James's son, Henry Thomas Halliday.

The timber used was transported by rail between Fremantle and Bayswater, and by horse-drawn cart between the railway line and the building site.

After Henry and Edith Halliday died, the house continued to be inhabited by some of their children.

The City opened up to expressions of interest from people and community groups for use of Halliday House.

The Bayswater Historical Society was successful in their application, and they opened Halliday House in 1993 as a museum.