Following several years with an uncertain future and a public campaign to save it, in 1977 the theatre was bought by the Government of Western Australia. Adhering to an April 1974 election promise to retain and restore the theatre in conjunction with a new Art Gallery and Cultural Centre, in 1977 the Charles Court Coalition Government undertook a A$10.5 million refurbishment. The final performance in the theatre before closing for renovation was the Gilbert and Sullivan Society's 25th anniversary production of "Iolanthe". The refurbishment took three years and was overseen by architects Hill and Parkinson.