It was established following a meeting of Manchester business people in 1803 which resolved to found an "institute uniting the advantages of a newsroom and a library". A visit by four of those men to the Athenaeum in Liverpool inspired them to achieve a similar institution in Manchester. Money was raised through members' subscriptions and it opened in 1806.
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Today, the building also accommodates an exhibition space. The ground floor is now tenanted by a public house though it was let to a bank for many years, while the library remains upstairs.