Designed by Jan Zawiejski, the theatre was erected on Holy Ghost Square ("Plac Św. Ducha") in place of the former 14th century church and monastery of religious order 'Duchacy' or Order of the Holy Ghost (hence the name of the square). The church had been converted into a residential building due to secularization of the Polish male branch of the cloister in 1783. The city council of Kraków decided to demolish it in 1886 in order to make room for a new theatre. The church was dismantled in May 1892an event which caused much controversy, notably the emotive declaration of Polish painter Jan Matejko, that he would never exhibit his paintings in Kraków again.