The history of the Kingston Butter Factory dates back to 1906, when a public meeting of dairying men was held at Beenleigh Shire Hall on April 12. More than 50 dairy farmers from all over the district, including Nerang, Coomera, Pimpama, Tamborine, Cedar Creek, Logan Village and Chambers Flat, attended the meeting with the objective of forming a co-operative butter factory.

There was much debate at the meeting concerning the location of the proposed company, which was later named the southern Queensland Co-operative Dairy Company. It was agreed that the site had to be near an adequate water supply and the railway line. A ballot was taken and Kingston was the choice.
The site of the butter factory took up part of James Trahey's property - the first selection of the area.

The factory was built by Waugh and Josephson at a cost of around 3,600 pounds and the manufacture of butter commenced on May 13, 1907. The official opening took place later that year with more than 350 shareholders and visitors present. The staff included a buttermaker, two engineers, a cream tester, two carters and two labourers, with the total weekly wage amounting to 36 pounds. Over the next few years, a manager's residence and several cottages for staff were built on the site, and 4 years after the factory opened, a railway siding was provided for the company. By 1930, weekly output was 40 to 50 tons, with more than 30 employees.

A new, larger factory was built in 1932 and a peak in production was reached in 1934 with an output of 3,367 tons of butter. Kingston butter was the choicest quality and won awards at home and abroad. The Co-operative was taken over by Peters in 1958, and by June 1979, had ceased taking milk and only produced cottage and baker's cheese. On April 15, 1983 the factory ceased production, ending an important era in Logan City's development.

The factory sat dormant for a number of years until 1988 when after completetion of major renovations the Kingston Butter Factory was transformed into it's current state. Funding from the state and federal governments and from the Logan City Council provided the recources to convert the Old Kingston Butter Factory into a community facility incorporating the Logan City Theatre Company, a museum, arts and craft venues and community group meeting and fuction rooms. The conversion and reopening of the Kingston Butter Factory coincided with Australia's Bi-centenial beginning and the Brisbane world expo.