The Capital Theatre is the last of the Bendigo theatres. When built this space was the largest hall in Victoria apart from the Melbourne Town Hall. The entire building is listed with the National Trust and Heritage Victoria. The Capital Theatre was closed in the 1970s after almost a century of opera, drama, dance and cinema.

In late 1987 three of the five Bendigo municipalities, Marong, Strathfieldsaye and Eaglehawk purchased the building from the Masons. With the financial support of State and Local Government, private and public subscriptions and overwhelming community support, renovations, costing around $6 million, started in 1989 and the building was officially reopened by the former Premier, Mrs. Joan Kirner on 26 April, 1991.

In 2003-2004, a Federal Government Grant allowed The Capital to undertake further upgrades throughout the venue. Advancment to backstage facilities and the structural development have improved the venue for local and commercial hirers. The Capital Theatre itself has been repainted in a darker colour, so that in the words of one patron, “it actually feels like a real theatre now!” The Box Office has been upgraded and enlarged to accommodate the growing number of patrons, and heritage experts were consulted to advise on the traditional heritage design carpet laid throughout The Capital.