Darwen became a municipal borough in March 1878 and civic leaders decided it was necessary to procure a town hall and a market hall: the original concept was to have two separate structures but after some debate it wasdecided to have a combined facility. The scheme was subject to a design competition which was supervised by Alfred Waterhouse and won by Charles Bell. The finance for the scheme was authorised under the Over Darwen Improvement Act 1879 and, after the River Darwen had been diverted into an underground culvert, the foundation stone for the new building was laid by the mayor, Alderman William Snape on 2 October 1880. The structure was built by a local contractor, J. Orrel & Sons, and the building was officially opened by the local member of parliament, Frederick Grafton on 21 June 1882.

The building served as the headquarters of Darwen Borough Council for much of the 20th century but ceased to be the local seat of government when the enlarged Blackburn with Darwen Borough Council was formed in 1974. The council chamber became the home of Darwen Town Council when it was formed in 2009.