The Taylor-Stace Cottage has great historical significance, as it is the oldest existing residence in the Pauatahanui district and possibly in the whole Wellington district. William and Anne Taylor arrived in New Zealand in 1840 and moved to Pauatahanui in 1847 where they constructed what is now the back portion of the cottage. In 1848 they moved to Tawa Flat and the house was eventually sold to Alfred Stace. The Stace family occupied the house for a period, although there is some debate as to how long they stayed and whether they completed the additions to the front of the cottage in c.1855-1860. (There is some doubt as to whether they were completed then or in 1906.) After the Stace family moved to the nearby 'Riversdale' home, the cottage was leased to a number of people.

In 1969 the cottage, considered at the time derelict, was bought by Huapai Properties (later the Whitby Community Developments Consortium.) The Consortium extensively modified the cottage, based on plans prepared by James Beard of the Wellington architectural firm of Gabites Toomath Beard Wilson and Partners. The cottage was leased as a craft gallery from 1972. It was sold in 1981 and one of the new owners was linked by marriage to the Stace family.

The cottage is a timber-framed structure with the exterior walls sheathed in plain weatherboards on the back or south wing, and rusticated weatherboards on the front or north wing. It has a gable roof sheathed in corrugated iron. In the south wing the flooring is brick, whilst in the north wing the floor is made of original tongue and groove boards. The interior is of both parts is lined with rough-sawn sarking.

The Taylor-Stace Cottage has historical significance for its link with early settler families in Pauatahanui. The cottage is also a well-known landmark in the area.