[4] In 1834, Peter Degraves, founder of Cascade Brewery, and a group of Hobart citizens purchased dock-side land for the purpose of building a public theatre.

[citation needed] Architect John Lee Archer[3] created a provincial Georgian design and the first stone was laid that year.

[3] The architect accommodated the local population by creating an entrance through a neighbouring pub directly into the theatre's pit seating, colloquially known as "the Shades."

When a national economic downturn caused most of the original investors to pull out, Degraves stepped in and took complete ownership.

It staged its inaugural performances in March 1837; Thomas Morton's Speed the Plough and the W. Oxberry's The Spoiled Child.

The patrons of the Shades included visiting seamen and workers from the convict-laden Wapping area surrounding the theatre.

Designed by William Pitt from Melbourne, who specialised in theatres, the Shades was replaced with raked stalls seating, and a higher and steeper balcony was built above.

In addition to restoring much of the 1911 decorations, the backstage facilities were modernized and reconfigured to become the Backspace Theatre, a venue for cabaret and smaller local companies.

'Australia's grand old lady of the theatre world' was quickly launched back into reconstruction, covered by a public fundraising appeal, adequate insurance and the State Government's assurance.

It re-established itself as a centre of Hobart's social life, thanks in part to government policies encouraging national touring of popular theatre shows.