Multiple parties expressed interest in the property, and in 2009, the State of Connecticut sold the 393 acres of the Norwich State Hospital site to the town of Preston for $1 and with the sale the town of Preston agreed to perform the needed environmental remediation of the property before any development was to begin on the site.

This is described by the Mohegan Tribe as a "non-gaming destination with outdoor and indoor attractions, hotel and retail space, restaurants, housing, a marina, an RV Park and more".

The facility quickly outgrew its meager beginnings, and by fall of 1905, it held 151 patients and had expanded its housing by adding two additional buildings.

Around 1940, each building was given a name in honor of the founding superintendents of the American Psychiatric Association and well-known mental health advocates such as Thomas Story Kirkbride and Dorothea Dix.

[8] Later buildings were named after recognized contributors to the hospital, including Connecticut governors Abraham Ribicoff and John Davis Lodge.

Built like a general hospital, it reflected the then-modern belief that mental illness could be treated biologically on a short-term stay, thus reducing the need for antiquated long-term care wards.

Gradually, as the number of patients and employees began to decrease, when a new structure was built, an older one would be closed, and by the early 1970s, only 7 of the original buildings were still in use, the others used for either storage or abandoned completely.

Due to the large number to structures and the hundreds of acres they stood on, the majority of buildings were connected by a series of underground passageways.

In the mid 2000's, the tunnels became a means of transportation for trespassers who hope to explore the grounds of the hospital undetected by the security officers who have been hired by the state to patrol the vacant site.

[32] Since the DPW first made an offer to the town of Preston to purchase a portion of the Norwich State Hospital, several proposals have been submitted for the use of the property.

Utopia promised an entertainment complex consisting of a theme park, 4,200 hotel rooms, a performing arts school and a movie studio.

However, in November of the same year, the proposal was canceled by the town due to Utopia missing several key deadlines and, most importantly, failing to place $53 million in escrow as agreed.

[38] Preston Redevelopment Agency stated in October 2023 that all remaining structures would stand until the property is transferred to the Mohegan Tribe.

The Norwich State Hospital was featured in the TV series Life After People, in the episode titled "Crypt of Civilization", which aired on January 19, 2010.

Syfy Channel's Ghost Hunters paranormal investigating team explored the location in their sixth season which aired May 5, 2010.