The Parramatta School of Arts and Mechanics Institute had its humble beginnings in 1841 in the Mechanics Library reading rooms of Elder House. Upon the closure of Elder House a meeting was held in 1850 to discuss the formation of a School of Arts and Sciences. Permission was granted to use a wing of the old Colonial Hospital before closing. Another School of Arts opened in a hall on the north eastern corner of Marsden and Phillip Streets. The first purpose built premises were opened in 1867 in Barrack Square and throughout the 1870s interest and support dramatically increased. A new wing was added in 1877 to cope with the need for expansion. However, this success was not to last. The building was resumed by the government in 1882, as it was required by the Department of Education, forcing the school to move into a hall in George Street. Here they were soon served a notice to quit and the school's library was handed over to Parramatta Council's old Free Public Library. Culturally minded citizens continued to fight on behalf of the School and eventually land adjacent to the old Primitive Methodist Church in Mac1quarie Street was acquired and a building was erected by the Architects, Hart and Lavors. This was opened by Lord Carrington in March 1886. Again the success of the School was short-lived. The 'Banking Panic' or 'Slump' of the 1890s led to the vacation of Parramatta by the School's greatest supporters, leaving it bereft of finance and causing many of the classes to be withdrawn. The School slowly built itself back up and continued on for over a half a century until 1960 when the Trustees of the School of Arts voted unanimously to hand over the School building and library to Parramatta City Council. The hand-over occurred in 1961 and the building sold in 1962 to the Australian Mutual Provident Society. The School of Arts Library was transferred to the Parramatta City Library.