The Berrima District Historical and Family History Society has had its lease renewed for 21 years.
The renewal for occupation of part of 114 Main Street, Mittagong was discussed at the Wingecarribee Shire council meeting at Moss Vale Civic Centre on Wednesday night.
The lease of the property is set at the rate of $1 per annum, in accordance with council's policy for the lease and licence of council property for not-for-profit organisations.
The building is shared with members of the Mittagong Playhouse theatre group.
Berrima District Historical and Family History Society resident Ian Mackey said the society had been in existence since 1960 and had occupied the Mittagong premises since 1983.
"As you can imagine we have accumulated a huge volume of historical records of the local area," Mr Mackey said.
"We regard our current premises as the only suitable premises at this time in the district for us to continue our work in carrying out the collection, preservation and dissemination of historical records on the Wingecarribee Shire."
The discussion was followed by a period of public notice, where council received nine submissions.
Among the concerns was the length of the lease, availability of parking spaces and "overcrowding" at the front of house for patrons.
Mittagong Playhouse representative Steve Cheers also spoke at the council meeting and asked councillors to delay their decision to allow further discussion.
Mr Cheers said he was unsatisfied with council's response to most of the submissions, which was "comments noted".
"I'm certainly not here to trash the reputation or important work of the [Berrima District Historical and Family History Society]... nor am I here to promote them being kicked out on the street," Mr Cheers said.
"I would ask that you consider the democratic process, let us be heard… allow us to consider this matter further and please vote to delay the lease."