Beth HoldenMechanical rides like the horse were originally created in the 1930s.
The inventor, a man named James Otto Hahs, in Missouri, the United States, had built a wooden one for his children.
He realised they could be a money-making opportunity, but the wooden ones would be too heavy, so they were initially made out of aluminium.
Years later, they were made out of fibreglass, which is what the donated horse is made from.
Holden said there were still a few around, although their popularity has waned somewhat.
The mechanical horse still goes, but because it sits on the museum porch, a new plug will need to be installed.
Once that is done, they will be able to offer it for rides, although children will still need to ask their parents for the $1.
The museum would also love to get hold of any old photos of the horse outside the shop, especially when it was still McKenzie's.
If anyone has such photos, please get in touch with the museum.