The Museum of Perth has found a home in a city laneway and its creators hope a combination of coffee and contemporary design will draw a diverse crowd.

History buff Dallas Robertson started the museum as a social media experiment three years ago.

The project gained a following when Mr Robertson shared archival images of the city.

The idea to create a brick and mortar space was taken up by Perth city councillor Reece Harley, who formed a board to make the museum a reality.

After a crowdfunding campaign raised just over $10,000, the museum opened its first exhibition at the weekend.

The permanent exhibition was a timeline of Perth's development.

The permanent exhibition boards are a timeline of the city's development. ( 720 ABC Perth: Emma Wynne )

Project manager Alysha Worth said the aim was to create a museum with a difference.

"We want to be contemporary looking; we don't want a typical museum style with didactic panels," she said.

"We designed it as a colourful, sculptural element to draw people into the story."

Tucked away on in Grand Lane — which runs between Wellington Street and the eastern end of the Murray Street mall — the museum entices the public into the little-known space.

The City of Perth added street art and lighting, which have helped transform the area.

The space also includes a micro cinema, which is a currently screening a documentary about the Coolbaroo Club — an Aboriginal-run dance club which operated when Indigenous people were not allowed in the city boundaries without a permit.

The museum entrance on Grand Lane, between Murray and Wellington Streets in Perth. ( 720 ABC Perth: Emma Wynne )

"It is really nice to see people reacting, saying they have been to the club and participated in the dances and they are enjoying seeing it on screen," Ms Worth said.

The museum opened in conjunction with the Perth Heritage festival at the weekend and attracted a strong crowd.

"The success of this project is reliant on collaborations and making sure we are working with the community of Perth," Ms Worth said.

"It is really important that people come into this space and feel an emotional response to it."

Ms Worth said she had noticed a big change in the area since the construction of the cafe and museum.

"I had been abused, I've been yelled at. We opened the front door to find someone urinating on it one day," she said.

"Now that it is open, people attract more people and it is nice to see people coming down the laneway to see what is happening."

History and hot beverages mix for multi-use space

Crucial to the museum's success has been the cafe which shares the space.

"Great places have more than one use. The cafe actually draws in a different demographic from what a museum would," Ms Worth said.

"If we were purely a museum, there is a perception about what that means and draws only certain types of people.

"Our aim is to diversify who comes in and from young to old, with any experience of Perth."

The Museum of Perth cafe — Henry Saw — was named after the man who first imported coffee to Perth. ( 720 ABC Perth: Emma Wynne )

The Museum of Perth has received no funding from the State Government and hoped to attract private sponsorship and further crowdfunding into the future.

Ultimately, they hoped to move to a larger space in several years time.

"This is like a prototype; it is a new concept," Ms Worth said.

"We started as an online, virtual museum to being in an actual space, and I think it's important for us to start small and then build up."

Future exhibitions planned include the history of coffee culture in Perth and a collaboration with Pride to celebrate 25 years of the event in Western Australia.