In 2007, as a result of cost saving exercises, by owners Waltham Forest Borough Council, the museum's opening hours were cut back to allow staffing to be reduced.

This broke a stipulation of gifts by Sir Frank Brangwyn, that works should be on view for a minimum amount of time weekly.

And a number of campaigners, including former Culture Secretary Chris Smith, were concerned that this would lead to the museum's closure.

[4][5][6] In March 2009 the Heritage Lottery Fund awarded the gallery £80,000 to enable detailed proposals for redevelopment.

[7] The redevelopment of Water House, designed by architects and exhibition designers Pringle Richards Sharratt, included a new wing "inspired by Georgian & Victorian precedents" containing a 60 m2 (650 sq ft) gallery for temporary exhibitions as well as a tearoom with windows incorporating a Morris ‘Thistle’ frit pattern and a balcony that overlooks the gardens.