The non-profit organization began with an idea and investment in June of 1978 and officially became incorporated in January of 1979. In May of 1983, the first scholarship was awarded to Michael Wilkinson. The scholarships continue to be presented at the Fine Arts concert at the High School in May and have helped many students continue excelling in the Arts. Also in that year, props, sets, and costumes were moved from the bank basement and homes of individuals to a more permanent place above the Murken Insurance building on the corner of Main and Center.
In February of 1984, the first awards banquet known as the 'Golden Square Awards' was held. Each February 29, the banquet continues to be held to honor and roast all involved in the community plays. After moving several times and searching for a permanent property, La Rosa Hacienda, more commonly known as the Pink House, was bought in September of 1988. The Pink House continues to be the iconic home of the the Village Square Theatre costumes and props.
Today, the group host three plays a year at Fanny Howell Auditorium in Lake City: the spring High School play, the summer Children's Theatre, and the fall Dinner Theatre. To date, the VST has produced more than 80 shows and given more than 60 scholarships to local students.