According to the book titled Mamaku - 100 years, published by the Mamaku Centennial committee in 1994, the old theatre used to be the first stop for new movies in the region in its day.
The theatre could accommodate up to 300 people and many often had to be turned away, such was its popularity.
Mamaku man Robbie Martin was quoted in the book.
"It's not every picture theatre you could sit in and have a possum fall through the roof. It caused a hell of a circus.
"To get into the pictures for free as kids, we'd ride out to McKenzie Falls and get koura to bring back for old man Chibba. He'd give us a packet of Jaffas to take with us," he said.
Mrs Bala said she could remember her parents, Govind and Vali Chibba, running the theatre and milk bar with her brother-in-law.
After the theatre closed in 1968, the family converted it into a home and local store on the suggestion of friends Tom and Olive Jordan.
The Jordan's granddaughter, Karen Mcleay, remembered the discussions.
"My grandparents were the ones who gave them the idea. I think it's important that it is [documented] that it was there for historic purposes," she said.
Demolition began after the family gifted the building and fittings to a local resident to dismantle.
"It's not just a theatre to us, my six children were brought up in that house.
"I just have too many memories to remember [them all]," Mrs Bala said.
The family have already erected two units on part of the site and plan to build two more once demolition is complete.