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The Shuiyuan Theater is located on the 10th floor of Shuiyuan Building (Shuiyuan Market), which used to be the auditorium of the Taipei City Bureau of Military Affairs. The Taipei City Government implemented the "Public Art Space Integration Plan" and renovated the auditorium into a 500-seat professional performance venue. The theater has been in operation since November 2011 and is managed by the Cultural Affairs Bureau of Taipei City Government. The theater accepts applications from performance groups for scheduled performances. Furthermore, the Shuiyuan Theater continues to sponsor performance groups to organize long-term shows, aiming to cultivate talent in the arts and cultural industry, build a favorable cultural environment, and enhance the energy of Taiwan's performing arts industry.