The District Theatre began operations in 2017. Prior to its creation, it was the home of Theatre on the Square, or “TOTS”. for 30 years.  TOTS focused on unique and original theatre, producing shows that fearlessly embraced marginalized communities, subject matters, and ideas, sometimes holding a mirror up to society that didn’t always embrace diversity. It also became a touchstone for the LGBTQ community by presenting productions that gave voice to a culture when few other companies would do so. 

In 2017 with a desire to ensure the space on Mass Ave was preserved as a theatrical venue and an important cultural hub in the community, Central Indiana Community Foundation took over the building and recruited a founding Board of directors who incorporated a new 501(c)(3) and supporting organization of CICF known as The District Theatre. The new leadership enshrined in The District Theatre’s mission a commitment to preserving the bold, status quo-challenging, and fearlessly diverse history of TOTS. In furtherance of that mission, The District Theatre has adopted a strategic focus of helping resource and incubate new professional resident equity theatre companies, beginning with a Black resident professional equity company.
 
In 2018, The District Theatre contracted  IndyFringe Festival to run the day-to-day operations for three years while the Board worked on creating a strategic plan. In 2021, The District Theatre resumed management due to the financial implications of COVID- 19.  The theatre continues to be managed by Pauline Moffat, former President and CEO of IndyFringe.
 
The theatre was resilient in its efforts during the pandemic, thanks in part to the support of grants from the Indy Arts and Culture Restart & Resilience Fund (made possible by Lilly Endowment Inc) and Shuttered Venue federal grant funds. To encourage audiences to return to theater, TDT built an 80-seat outdoor stage and opened the OutBack Theatre in May 2021. A mix of indoor and outdoor shows continued until October 2021 when all shows returned to The Cabaret and Mainstage. Grants from CreatINg Spaces and Allen Whitehill Clowes Charitable Foundation totaling $160,000.00 were obtained to restore the façade of the theatre and upgrade Mainstage.