The James Theatre in Dungog holds a special place in Australian cinema history. Originally built as an open-air theatre screening silent films in 1913, it remains Australia's oldest continuously operating purpose-built picture theatre.

James Theatre was roofed over in 1914, and underwent extensive reconstruction in 1930, when the Spanish Mission style façade was added. This façade is architecturally significant as it is one of only four Spanish Mission cinema facades in New South Wales, and is heritage listed. The theatre was also equipped for 'talkies', and featured a large stage and dressing rooms. The auditorium provided 650 seats for filmgoers. Interestingly, the floor in the front section was flat with removable seating, so that the theatre could also be used for dances and social events.

Dungog Shire Council acquired the building as a community centre in the 1980s. It continued to operate as a cinema for under Ken Reeve, a dedicated projectionist and film aficiando, until the Hopson family took over the role in late 2007.