The building which houses the Museum was built in 1910 by R. J. Hill as a mercantile. It has been a venue for traveling entertainers, a bar during WW II, a flooring shop, Montgomery Wards, and a gift shop. Upstairs there were doctor and dentist offices, a canning program during the Depression, then apartments for STP construction workers. The Palacios Area Historical Association bought the building in 1986. Restoration of the building began in 2006. It was reopened to the public on July 3, 2009 as part of the city’s centennial celebration. The Building has a Texas Historical Marker dedicated in 2000 and is on the National Register of Historic Places, receiving that distinction in 2009.