By 1866, the need for a new courthouse government building was apparent. The old courthouse, completed in 1852, accommodated not only the judicial needs of the young nation, but also served as the reception hall for diplomatic ceremonies and official social functions. The legislature appropriated funds towards a new palace and a new government building. Delays ensued. Kamehameha V envisioned a civic center around the palace, and plans were made to purchase the Mililani premises on King Street.
“It is the intention of this Govt to build a new Royal Palace here”. The cornerstone was laid on February 19, 1872. Kamehameha V never saw the completion of the Government Building; nor did they build his new Palace. The Government Building officially opened by the Legislature on April 30, 1874. “‘Ali‘iolani House’ is the name by which the new Government house is to be hereafter known, by command of His Majesty (Kalākaua.)” The building is known as Ali‘iolani Hale; it is the former seat of government of the Kingdom of Hawaiʻi and the Republic of Hawaiʻi and now houses the Hawai‘i Supreme Court and Judiciary History Center of Hawai‘i.