[1] Watts moved to "Limnerslease" in Compton in 1891, and with his artist wife, Mary Fraser-Tytler, planned a museum devoted to his work, which opened in April 1904, just before his death.

Inspired by the Arts and Crafts movement, the building contains top-lit galleries that allow Watts's work to be displayed under natural light.

In January 2008, it was announced that the Gallery intended to deaccession and sell two Victorian paintings, Sleeping Woman (1880) by Albert Joseph Moore and Triumph of Love (1871) by Edward Burne-Jones, which had both been bequeathed to the collection by Cecil French.

[5] In December 2006, Watts Gallery received a £4.3 million grant from the Heritage Lottery Fund for renovations to help safeguard the future of the building and its collections.

Watts Gallery reopened in June 2011 after a major scheme of works, including extension, refurbishment and restoration.