The foundation stone was laid, on Thursday 26 December 1844, by the Right Reverend Dr. William Broughton, first Bishop of Australia, who also preached.

The Reverend Dr. T. Steele, Rector of St. Peter's Cook's River, assisted in the ceremony that was attended by a large crowd composed principally of residents from the immediate neighbourhood.

The church was situated on the "New Town Road", near Victoria Street, on land donated by representatives of former Governor William Bligh's widow, Elizabeth.

The newspaper account described the church as a "very neat brick edifice, seventy feet long by twenty-six wide" with a vestry and belfry.

When finally replaced, the original church remained in use as the parish hall and Sunday School, until destroyed by fire on 16 September 1938.

Upon presentation by Charles Windeyer, member for West Sydney, the New South Wales Legislative Assembly voted, 10 February 1871, to receive the petition and proceed with an Act.

The Act, entitled The Camperdown Cemetery Trust Bill, moved through both houses of parliament quickly and by late March it had received the Governor's consent.

[1][4][5] Edmund Blacket had been appointed architect on 17 February 1871 and by June had submitted plans and called for tenders for the first part of the building.

The contract for the first stage of the stonework (walls to the height of 17 feet) was awarded to Robert Kirkham and his partner, George Dowling.

The rector, the Reverend Robert Taylor conducted the first part of the service assisted by other clergy, and the Dean of Sydney preached.

A scroll was read by C. Rolleston, and deposited in the cavity of the stone in a sealed bottle, which also contained copies of the Sydney Morning Herald and the Australian Churchman.

The scroll was as follows: – "Newtown: To the glory of God, and in remembrance of the Christian Martyr St. Stephen, the foundation-stone of this Church was laid by his Excellency the Right Honorable Somerset Richard, Earl of Belmore, Governor-in-Chief of the colony of New South Wales, on the eleventh day of November, in the year of our Lord, 1871, being the thirty-fifth year in the reign of her Majesty Victoria, Queen of Great Britain and Ireland, &c.;, &c.;, &c.; The Right Reverend F. Barker, D.D., Bishop of Sydney and Metropolitan.

[1] The building progressed quickly and by September 1873 tenders were called for the second stage of the stonework and completion of the walls of the church, clerestory, tower and steeple.

St. Stephen's was completed in 1874, and a meeting of the subscribers to the building fund was held on Saturday 28 March to allot and let the pews.

[1] St. Stephen's is an English Decorated Gothic Revival church in cruciform plan with side aisles, gallery, two vestries, and porch.

With dimensions of 34 by 15 metres (110 by 48 ft), and a final construction cost of A£13,000, it was the largest and most prominent building in the area, and was widely recognized as one of Edmund Blacket's finest designs.

The full amount for the cost of the building was subscribed at one time making it possible to erect it in a continuous operation without stops and starts unlike so many other churches Blacket designed.

[1] Other than some minor alterations to the organ in 1895 by G.K. Sandford of Newtown, and a redesigning of the chancel by prominent Sydney architect, Burcham Clamp, in 1927 and carried out by J. M and A. Pringle, the church remains as Blacket designed it.

The church is in a prominent position on the crest of a rise, approximately three miles south west of the city of Sydney.

[12][1] St Stephen's Anglican Church was listed on the New South Wales State Heritage Register on 2 April 1999.