As the school developed further with more pupils, as a result of the building of the Pearson Building, space became a premium. An appeal was made for the erection of a school chapel and thus allowing 'Big School' to be made available solely for educational purposes. In June 1882 a new little iron chapel, often referred to as a "tin tabernacle" was erected adjoining King Street for the cost of £290, which included a sum of £150 being contributed in thank-offerings of £5 each by gentlemen educated at Derby School who had gained scholarships, exhibitions or similar honourable distinctions.