The Yackandandah and District Historical Society was founded in 1969 when a group of concerned citizens became aware of the possibility that the former Bank of Victoria building may be demolished. It was envisaged that this would be a suitable site for a community museum.
With the assistance of the Yackandandah Shire Council the property was purchased. At that time the site included all the land from High Street to Hammond Street. A decision was made to subdivide the land and sell the rear portion to help repay the loan from the Yackandandah Shire. This made the Yackandandah Museum one of the few in the state to be community owned.
The Bank of Victoria building was restored and opened to the public in 1972. Later the timber cottage was also restored and opened to the public in 1981. In 1986 the ‘double dunny’ was restored and the official opening of this building received national press coverage.
A grant from the Victorian Ministry of Arts combined with a generous donation and local funds made it possible to erect a conservation and storage building on the site in 1996.