In 1950, however, the severe Red River flood left the bandstand destroyed, as it did thousands of other Manitoban buildings and homes.

The Civic Music League led the fundraising campaign for the construction of the new stage, and involved radio contests, a limerick competition, and canvassing at local businesses.

The new theatre received its named after architect Dennis Carter brought a cardboard model of the design with him to a meeting one night, and someone had observed that if lights were strung along the top curvature, "it would look like a rainbow.

Though some construction was still needing to be done, the Rainbow Stage saw its first concert on 22 September 1953, performed by the touring Kitsilano Boys Band from Vancouver.

[2][5] On 7 July 1954, the Rainbow Stage was officially opened, featuring a benefit concert with Bill Walker as the night's MC.

[8][12] Jack Shapira was maintained as executive producer of Rainbow Stage Inc. until he was forced to resign in 1988 as a result of financial improprieties.

[9] In 2011, the building's exterior was painted in an extensive mural by local artists Mandy Van Leeuwen and Michel Saint Hilaire.

Other Canadian performers at Rainbow Stage have included Jan Rubeš, Roma Hearn, Catherine McKinnon, and Wally Koster.

[citation needed] In 2018, Rainbow Stage made a revenue of CA$2.8 million—2% coming from sponsorships, 3% from government (municipal, provincial, and federal), 8% from donations and fundraising, and the rest from earned income (i.e., ticket sales, concessions, souvenirs).