The Khyber was originally erected as The Church of England Institute in 1888, and was designed by architect Henry Busch in an eclectic Victorian style with strong Gothic Revival influences.  The building was commissioned by Bishop Hibbert Binney.  Other buildings designed by Busch in Halifax include the Halifax Academy and the Halifax Public Gardens Bandstand.

The building was unofficially renamed the Khyber Building in the 1970s when the Khyber Cafe opened on the ground floor. Also important to note was Halifax’s first gay bar known as “The Turret” that operated on the 3rd floor from 76-82.  In 1994, the Khyber was established as an arts facility by the No Money Down Cultural Society, a group of artists who negotiated an agreement with the City of Halifax to maintain the city-owned and then unoccupied building in exchange for permission to hold art exhibitions and operate a dance club.

In March 1995, when the building was slated for sale by the regional municipality, the Khyber Arts Society was established. The Society, which included members from No Money Down, launched a widespread campaign to keep the Khyber public and to secure a long-term lease. With the support of several members of Halifax City Council, the Khyber Arts Society was promised a three-year lease at $1 per year. However, due to the expansion of the adjoining Neptune Theatre, the Khyber Building needed extensive structural renovations, and the Society was forced to temporarily relocate. As a result of these complications, the deal fell through.

A year later, in 1996, the Khyber Arts Society signed a new five-year renewable lease with the City of Halifax to occupy the Khyber Building. The agreement included restoration and business plans that provided the Society with reduced rent for the first four years in exchange for ongoing volunteer labour to restore the building. During this phase of renovations, the Society obtained a loan from the Heritage Trust of Nova Scotia (a non-profit advocacy group for heritage preservation that now occupies a first-floor office in the building) and fundraised enough money not only to self-finance the renovations, but also to purchase bar equipment. In March 1998, after obtaining a liquor license, the Khyber Club was opened to the public, and quickly established itself as a meeting place for visual artists and as an important venue for Halifax’s emerging music scene.

Currently, the Khyber Arts Society is in the process of negotiating a redevelopment a plan with the Halifax Regional Municipality and TCI management consultants for the building to be once again used as a three floor contemporary art centre for downtown Halifax.