Since opening as the Mercantile Hotel in 1853 the establishment on the corner of King and Flinders street Melbourne has had a colorful and entertaining history. The first publican was Stephen Donovan who held the license for just nine months before selling the goodwill to W. McDonough for the sum of �10,000 and �1,500 per annum rent.

The Hotel had a further two name changes in 1867 becoming the Duke of Edinburgh and in 1868 the London and Barnarvon Hotel. The Hotel had a long list of publicans including many women. In 1915 the hotel was again renamed, this time to its current title the Waterside Hotel.

In 1925 the Hotel was rebuilt. A new three level brick Hotel was designed by architect Harry R. Johnson. Downstairs there were three bars, a private saloon and lounge, and a private dining room at the north end of the building. The two upper levels held accommodation for railway travelers visiting Melbourne.

The Yarra had been widened in 1887 allowing larger ships up the river, the Waterside being the first port of call. The area had served as a port since Melbourne's beginnings and many of the dock�s workers frequented the hotel. The opening hours were changed to 6.00am to reflect the clientele�s needs.