The settlement of the Nelson region is said to have begun with the landing of the prominent early iwi, Waitaha, in the waka Uruao. This travelled from Hawaiki and the voyagers made landfall on the Boulder Bank c.850, near what would become Nelson city. From there scouting parties set out to explore the interior while others continued their journey by sea down the east coast of the South Island. Maori later developed a series of trails inland around the Murchison and Nelson Lakes area such as that through Tophouse Pass. For Maori, and eventually the Europeans who used it in the mid 19th century, this and other tracks in the area were vital passages providing access to the West Coast as well as eastern and southern districts.
A European association with the Nelson area was first established in 1642 when Abel Tasman anchored in what was to be called Murderer's, then Massacre, and now Golden Bay. The result of this first visit was a lethal exchange between the Dutch sailors and Ngati Tumatakokiri. It was centuries after this initial encounter that European interest in the area began in earnest with explorative visits from Captain James Cook and Dumont D'Urville and a few others. Then in the late 18th and early 19th centuries flax traders and sealers began to frequent the coast around Nelson. However, because there were few whaling stations in the immediate area there was no substantive European settlement until the New Zealand Company's establishment and settlement of Nelson from 1841.
The company explored the potential of several sites for its settlement but Nelson was chosen as the nucleus because of its harbour and the plentiful supplies of game and fish, despite the generally swampy nature of the low lying areas. It was then a matter of Captain Arthur Wakefield meeting with the various iwi of the region to persuade them to agree to the proposed settlement. This was essentially a confirmation and extension of a land sale organised by the Tory expedition in 1839. The meeting took place at Kaiteriteri and Wakefield eventually negotiated a deal with those in attendance. However, subsequent events demonstrate that in regard to this and some later transactions there were discrepancies in what each party believed they had agreed to. This led to several instances of conflict in the Nelson region during the 1840s, in particular. Perhaps the most well-known occurrence was the 'Wairau Massacre' in 1843.
It was not until the 1850s that the Nelson community and its subsidiary towns began to coalesce. Provincial government was established in 1853, and most of the farm land from Wakapuaka to Brightwater was occupied by this date. Between 1853 and 1858 the European population of the district had risen from 4,587 to over 7,000 and continued to grow and prosper into the 1860s and 1870s with the aid of the local gold rushes and the nationwide demand for the area's produce. The gold rushes also saw the development of small trading and supply settlements further inland.
Early explorations into the Murchison area were undertaken in the 1840s by Charles Heaphy, Thomas Brunner, and William Fox. Until the discovery of gold in the proximity there was little to entice people into the area, but by 1865 there was sufficient interest in the area for Brunner to return and survey the town, which was initially called Hampden. This name was changed to Murchison in 1882 to forestall confusion with a town in Otago and also one in Hawke's Bay. However, at this time and indeed until the 20th century, Murchison was considered a frontier settlement and its continuance relied on small-scale gold mining operations and its timber industry. Roads in the area were rudimentary, if they existed at all, and so access was minimal and difficult. This isolation did not foster commerce and as such the standard of living of most local residents in the late 19th century was barely above subsistence.
Murchison seems to have come of age in the early 20th century, changing from a frontier settlement into an established support centre for the burgeoning dairy industry and other commercial enterprises. This transition was recognised in 1909 when the town became the centre of Murchison County, an area that was previously incorporated into the Inangahua County. This was a status symbol, but also a result of the growth of Murchison's identity as dairy farming area as opposed to that in Inangahua County which was characterised by mining and milling. The transition from frontier community to established town and seat of local governance was physically marked in Murchison by the building of the Council Chambers (1913) and other civic buildings. The presence of several large hotels in the town centre by 1900, complete with stables and often an associated hall, and enough patronage to ensure their ongoing viability, is also evidence of this early 20th century change in the town's fortunes.
There were several halls in Murchison by the beginning of the 20th century. These were generally multi-purpose venues were community meetings, dances, concerts, and other gatherings like church services and schooling were sometimes held. The first hall in the town was constructed by George Moonlight who was the proprietor of the Commercial Hotel in the 1870s. This was known as Moonlight's Hall and the name changed depending on who was in charge of the hotel, for example, it became Rait's Hall in the 1880s. However, in 1916 this original hall was demolished and replaced with the current building by H.R. Duncan who was the owner of the Commercial Hotel at that time soon after. The specific date for the construction of the Murchison Theatre is uncertain but it was built by about 1922. Soon after it was built the first films were shown in the building by a local company and it was also used for local dances and balls with people from all over the district attending.
Perhaps the biggest event in Murchison during the 20th century was the Murchison earthquake on the morning of 17 June, 1929. Despite both being magnitude 7.8 earthquakes the devastating effects of the Murchison earthquake were overshadowed in the national consciousness by the destruction caused by the Hawke's Bay earthquake. However, for those who experienced it in and around Murchison the earthquake was terrifying. A Glenhope resident, Jean McWha recalled everyone's relief when the initial reports that Murchison 'had disappeared completely under slips' was proven false by the streams of refugees who evacuated the town and headed for Nelson the next day.
Despite surviving the earthquake relatively unscathed structurally, the event affected the cinema business of the hall. It is perhaps not surprising that film screenings did not resume until John Rennie leased the building in 1931 given the priority people would have given to rebuilding their lives, and the lack of disposable income that this and the initial effects of the Great Depression would have had. However, when Rennie did open for business it was with a novelty previously unseen in Murchison, 'talkies', which caused a sensation among local people.
Despite being a popular leisure time destination, by 1937 Rennie was finding that the film screenings were not profitable. This motivated the forming of the Murchison Theatre Company in 1937 by a group of local citizens. This company had the specific aim of making sure that the district maintained a cinema venue and as such they bought the theatre building. Well-known local people were involved in the company, including L.W. Hodgson and D. Downie, both of which had prominent family businesses in Murchison by the early 20th century. In the same year as the company purchased the theatre it upgraded the facilities, which included the installation of better seating and the raked floor. The company then began to screen films again.
This period was one in which it is said that 'almost everyone went to the 'pictures,' some travelling long distances from the valleys each week, with rugs and hot water bottles to keep them warm in winter.' The movies were shown every Saturday night but if that session was overbooked a Friday night screening was often held. Children's films were shown on a Saturday afternoon and the productions were also staged in the theatre. However, eventually patronage steadily declined after television became more widespread and this forced the company to dissolve in 1973.
The building was then in a stasis for several years until it was purchased by Bill Oxnam for a bargain price. The Murchison centenary celebrations in 1976 brought the condition and facilities at the theatre, which is the only venue in the town suitable for seating large numbers of people, into question. As a result of a QEII Trust loan, Oxnam, with the help of the community, was able to paint the exterior of the theatre and to also build onto the back of the building to incorporate the then outside toilet facilities into the building proper. A highlight of the centenary of Murchison was a concert performed by local and Nelson-based people in the theatre. The projectors were also restored at this time and weekly film screenings recommenced with a showing of 'Towering Inferno.' The last recorded movie screening at the theatre was in 1984.
As a result of the celebrations the group which came together for the centenary performance formed the Murchison Theatrical Society, which has been based in the building ever since. This company used to stage regular performances but has suffered recently from the lack of an enthusiastic director. The building, which was vested in the community group The Murchison Theatre Incorporated in 1991, is now most frequently used by the local country music club and also on occasion by the high school's drama students.