The Gwalia State Hotel was established by the State Government way back in 1902, to combat the sly grog trade in Gwalia and to provide an alternative to the hotels in Leonora.
Construction of the Hotel was completed at a cost of £6,000 and the doors opened in 1903.
At the time of opening, the hotel was described as being two-storey and built of brick, with a 10ft balcony running around the front and eastern sides. At the rear there was a private balcony for the use of the boarders. On the ground floor were nine rooms.
Newspaper reports describe the hotel as containing a billiard-room 25ft x 20ft, bar-room 25ft. x 18ft. saloon bar which, however, was deemed unnecessary , so it was used as a smoking-room for guests and as an office, dining room 25ft x 18ft., pantry, store-room, kitchen, and scullery on the ground floor; while on the upper storey provision was made for a drawing-room, three single and three double bedrooms with separate quarters for servants over the dining-room, as well as a bathroom.
It was apparent that the Government had given precedence to West Australian woods being used which saw the staircase in the main hall being an elaborate piece of work of polished jarrah, and the contractors had the opportunity to show what expert craftsmen can do with colonial woods.
The Gwalia State Hotel Closed in 1964. It was briefly opened to the public for the first time 54 years in November 2018 but today it can only be viewed from the street. Its facade is still a spectacle to behold.