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It appears that the Magic Kingdom's new theater to be built off Main Street U.S.A. has now been cancelled, although Disney is yet to officially announce the change of plans.

Construction was about to begin, with various areas cleared backstage to allow the work to get underway behind the existing Town Square Theater and Tomorrowland, but word comes to us from sources familiar with the matter that the construction project has been cancelled with immediate effect.

Originally announced at D23 in 2017, the new entertainment venue was to be based on the iconic Willis Wood theater in 1920s Kansas City, where Walt lived after he left Marceline.

At the original D23 announcement, it was described as:

“Across Walt Disney Parks and Resorts, we’ve been upping the game in Entertainment with shows like Frozen Live at the Hyperion,” Bob Chapek, Chairman of Walt Disney Parks & Resorts said. “It’s been a huge hit at the Disneyland Resort, and I’m sure many of you have seen it. This new theater at Walt Disney World continues that streak by bringing a new venue for world-class entertainment to the world’s biggest park.”

It isn't yet clear if plans have changed and a theater will be built elsewhere, or if the idea of a new theater has been completely abandoned.

As always, this information should be treated as speculation until officially announced by Disney.

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