A proposal by Lobster Pot Pty Ltd (a syndicate of local residents) for leasing an area of land for the purpose of erecting a Dancing palais was tabled at the meeting of the Barwon Heads Park Trustees on 12 December, 1933. The design of the building was possibly by Laird and Buchan or Mr Shefferlie, for both architectural practices had previously designed other structures in the Park.
The Lobster Pot Dance Hall was constructed in the early months of 1934, 'at the entrance to the Park facing the Mt Colite Hotel [Barwon Heads Hotel].'
In 1937, the Lobster Pot Pty Ltd applied for permission to build an addition on the east side of the hall for the use as a refreshment stall. By January 1939, the Hall was owned and controlled by the Park Trustees, who
leased it to Miss V. Bethuas for 12 months. It was at this time that the building was moved to its present location.
During the war years, the building was used as a recreation hall for troops stationed in the district. Towards the end of the war in 1945, the Hail was leased to the Education Department as a temporary school building.
