Founded in 1968, the institute was established out of a bequest from the expatriate Australian abstract artist John Wardell Power.
The bequest provided for the establishment of a teaching department, a research library, and a gallery for contemporary exhibitions.
In 1905, after graduating from the University of Sydney with Bachelor of Medicine, Power went to London to continue with his medical studies.
The library is closely associated with the Department of Art History at the University of Sydney and holds approximately 45,000 items including books, journals, video media and ephemera.
The library also holds a collection of theses and essays donated by honours and higher-degree students since the establishment of the department.