In the late 1800s and early 1900s Paeroa was the county town of Ohinemuri, and a transhipping port connected by means of steamers and a railway with the mining centres of Waihi, Waitekauri, Waikino and Karangahake. The settlement benefited considerably from industrial-scale gold-mining at nearby Karangahake as a result of the introduction of new cyanide processing techniques. Catering for growing prosperity and time for leisure, the Paeroa Domain reserve was set aside by the Ohinemuri County Council in the mid-1890s. At this time the land consisted of an area of swamp with a small creek draining into a lagoon, but by 1902 the lagoon had been drained and the area nearest Primrose Hill reclaimed. The Paeroa Domain Board was established in early 1904, and immediately bowls and tennis clubs were formed. A bowling green and tennis courts were ready for play during the 1904-1905 summer season, and soon over 300 ornamental trees had been planted in addition to the creation of an artificial pond and 92 chains of fencing. By 1906, a croquet lawn and rugby field had also been developed.

The suggestion of a band rotunda was considered by the Board late in 1905. A local brass band had been established in 1894 and contained ten performing members by 1900. In July 1906, the Board received a tender from H. Carter for £142 7s for the erection of band rotunda with an extra £3 3s for a roof similar to that erected in the Government Gardens at Rotorua. Rotorua was a fashionable leisure destination, and its rotunda - constructed in 1900 - was particularly ornate. The final contract price was modified to £130 pounds for the structure and £3 3s for the roof. By November 1906, the rotunda was nearing completion, surrounded by what was to be a circular pond or moat. A dispute with another contractor about the pond not holding water was resolved when C. Olsen offered to regrade the puddling. Access to the rotunda, when completed, was via a pair of bridges which, combined with the design of the rotunda itself, provided the pleasure gardens at the eastern end of the Domain with a slightly exotic atmosphere.

On November 17 a committee of 36 citizens and representatives of various interested groups was elected at a public meeting to organise a moonlight concert to open the band rotunda on Friday 30 1906. A half-day holiday was moved from Wednesday to the Friday, and agreed to by almost all of the local business community. The concert programme included a haka by local Maori, which was considered to have been the first time that many people at the event would have seen it performed. Admission to the Domain to attend the concert was one shilling each, and an additional shilling for access to the enclosure immediately around the pond. The rotunda was officially declared open by H. Poland, MHR, the local member of the House of Representatives, who noted that the cost of the rotunda had been raised by the people of Paeroa. The concert, which comprised of local performers and a brass band, was considered a great success.

In following years the rotunda hosted further concerts as well as official functions, such as the welcoming of Governor-Generals and early Anzac Day commemoration services. The moat was later filled in and changes were made to the gardens, which included the replacement of tennis courts by croquet lawns. A popular backdrop for picnics and local wedding parties, the structure was refurbished by the Paeroa Council during the 1970s. For most of the twentieth century, the rotunda lay close to a 1907 bowling pavilion with a distinctive 'Japanese-style' roof, which unfortunately burnt down in the late 1990s.