During the late 1970s, the government of Alberta began to consider building within, or adjacent to Dinosaur Provincial Park. In 1981, the provincial government formally announced plans to build a palaeontology museum. However, the museum was built in Midland Provincial Park near Drumheller, as opposed to Dinosaur Provincial Park. The construction of the museum formed a part of a larger initiative from premier Peter Lougheed, to establish a network of provincially-operated museums and interpretive centres in select small towns and rural areas throughout Alberta. The provincial government had allocated C$30 million to build the museum. The development of the museum was largely led by the institution's first director, David Baird.