On March 19, 1891 the Stawell Times and Wimmera Advertiser reported that at a recent council meeting a committee was appointed to enquire into the cost and practicality of lighting the town with electricity.
It was found that the estimated cost would be 4000 pounds.
Many discussions took place over the years but no action took place until after World War I.
By February 1922 the cost had increased considerably to 12,500 pounds.
In February 1922 an offer made by the North Western Woollen Mills to store and supply electricity to the town was declined and council decided to borrow the money to construct a local electricity scheme.
A site for this was still to be considered. In May 1922 Stawell Borough Council made contact with the State Electricity Commission of Victoria in connection with a bulk supply of electricity from the Morwell scheme, or a scheme of local generation, which was recommended as the best option at that time.
The Borough Council decided to go ahead with the local scheme and erect a galvanized iron power house, to be located in Victoria Park [later Cato Park] on the Sloane Street side.
On August 14, 1923 construction was complete and the electric lighting system for the town was officially switched on by the mayor of the day, James Paton at a final cost of 12,250 pounds.
Perhaps the most noted long term employee at the Power House was the late Mr A.N. (Dick) Pickering who was employed at the borough and then the town council for 34 years until his retirement in 1974.
Mr Pickering was employed as a meter reader, collector and relieving shift engineer and continued in this role for 27 years until the S.E.C. took over in 1968.
The Power House officially ceased operation on September 30, 1968
From September 1968 until February 1974 the building remained empty, but in that time the town council gave consideration to turning the former Power House into a sports stadium, and in later years, the Stawell Gymnastics Club used it.
in February 1974 a Melbourne clothing manufacturing firm "Kezander" began manufacturing clothes there. "Kezander" only lasted about three years.
In 1980 a small family business making wooden toys opened for business.
Then in February 1985 the Holeproof factory began operations.
This continued until April 1994 when Holeproof ceased manufacturing in Stawell.
lt was announced in The Stawell Times News on Friday March 2008 that there was to be a $2 million revamp of the Power House building.
At this time the building was housing the Neighbourhood House, Stawell Gymnastics and Grampians Model Railways.
The current building, as we see it today, has many tenants and was officially opened in June 2013.