When searching for a site for the MFB in the early 1890's it was decided that the East Melbourne location, originally known as Eastern Hill was ideal because, with an aid of a watchtower firefighters could get an uninterrupted view of Melbourne and the inner suburbs, and, it would be a downhill run for the horses to almost every fire !!.

The site was chosen and the MBF purchased the land at a cost of 12,000 pounds. An "Architects Competition" was held to search for the most favourable design based on a brief of requirements provided by the MFB. Some of the requirements included the need for "...a 150 foot watchtower, three turnout bays, stables for the horses and a special shed to house the particularly long American extension ladder...".

The winning design was by Messrs Smith and Johnson. Some alterations were however made to the plans prior to commencement. The firm of Thomas Cockram & Co. was selected in June 1892 to construct the building with a quoted price of 15,989 pounds. The new head station was officially opened on November 3, 1893. The Fire Brigade staged a parade and demonstration to commemorate the day. "...Included in the parade were eight steam engines, the Hayes extension ladder, the Shad Mason ladder and 20 hose carts, and 200 firemen...."