From 1827, Mechanics' Institutes, Literary Institutes, Athenaeums and Schools of Arts played an important role in the life of early Australian communities. Among their roles was the provision of libraries and reading rooms, but as community institutions they also provided lectures and adult education.
The 'School of Arts' movement began in Britain in the beginning of the nineteenth century. The first School of Arts opened in Edinburgh, Scotland in 1821, with others in Glasgow and London in 1823. The first Mechanics' Institute was established in Glasgow in 1821.
The first such institution in Australia was the Van Diemen's Land Mechanics' Institute, Hobart, which opened in 1827. This was soon followed by the Sydney Mechanics' School of Arts in 1833. By 1900 there were 1000 Mechanics' Institutes in Australia with memberships of between 100 and 200 people. Most of these Institutes did not have large libraries, usually having less than 1,000 books. Their role in a country town was more a general focus for the community's cultural activities, not just that of a library. As well as membership subscriptions, the Institutes were supported by colonial governments and sometimes by local government, usually by land grants and cash assistance. The institution generally had a purpose built building in the town. Many of these buildings are no longer home to those institutions but are used for other purposes.
The first Mechanics' Institute founded in Victoria was in Melbourne in 1839. The Institute at Portland was founded in 1843 and Geelong's Institute in 1846. Institutes were established at Beechworth, Kyneton, Prahran and Sandhurst (later known as Bendigo) in 1854, Castlemaine and Eldorado in 1855, Footscray in 1857, Ballarat and Creswick in 1859, Berwick in 1862, and Maldon in 1863. The increasing numbers of Mechanics' institutes in Victoria seems to have been a consequence of the expansion of settlement, in particular associated with the gold rushes, rather than from meeting any specific cultural, educational or recreational need. The Victorian government between 1860 and 1895 spent around £220,000 on grants. The increase in the number of institutes founded after 1860, especially in the country areas, was a direct result of the grants which were made available. The conditions attached to the grant, for the purchase of books and for public access, was influential in making the library the main activity of the institutes and achieved the aim of allowing many Victorians in the late 19th century to enjoy access to a reasonable library service.