On 7 April 1915 the Cooroy Butter Factory was officially opened by the Premier. Mr. D F. Denham. MLA. This was a timber factory built at a cost of £4500.

The current brick building was built in 1930. Mr C Heaven from Norman Park, Brisbane, obtained the contract for demolishing the old and constructing the new brick building and Mr H Hammar was Engineer. The new building was approximately 60 feet by 70 feet, which comprised the butter roller, churn room, cold storage room, testing room and a pasteurising room which was not included in the old building. Present churns were utilised as well as installation of a Flash pasteurising system, vats and cream cooler. The estimated cost for the brick building was £10,000. The Cooroy Butter Factory rapidly became one of Queensland’s model factories.

Spiralling production costs and a decline in dairying forced the closure in 1975. Since then it has been a restaurant and craft centre. Noosa Council bought the complex in 1991. In 2005 the Butter Factory became an Arts Centre for local and touring exhibitions operated by Council. In 2016 Noosa Council handed the management of the
Arts Centre over to the community volunteer organisation, Cooroy Future Group. The Butter Factory reincarnated as a community art space, and today houses four gallery spaces, a ceramics studio and an artisan store.