Construction of this building commenced in 1892 but work stopped before being resumed again in the same year it was completed.

The Newcastle Hospital replaced the original public health facility operating out of the 1854 Toodyay Convict Depot infirmary building.

In 1901 the cost of running the hospital was investigated by Dr Thomas Henry Lovegrove in his role as Principal Medical Officer for Western Australia and president of the Central Board of Health.

[2] An epidemic of diphtheria flared up in the district in late 1906 and so in the following year a wing of the hospital reopened.

[2] In 1910 the State Government and the Newcastle Road Board jointly took over the maintenance of the building, which remained operational as a hospital until 1940.