One of the oldest churches in Veliky Novgorod, the Church of the Annunciation of the Blessed Virgin Mary in Arkazhi, also known as the church on Lake Myachino, rises in the center of an ancient cemetery near the turn to Yuriev Monastery. According to legend, the wooden church was built in memory of the Novgorodians' victory over the Suzdalites in 1169, achieved thanks to the miraculous intercession of the icon "Mother of God of the Sign." In honor of the tenth anniversary of this victory, Archbishop Ilya and his brother Gavriil built a stone church and founded a monastery in just 70 days. The Novgorod First Chronicle reports: "In the year 1179. Archbishop Ilya laid the stone church of the Holy Annunciation of the Mother of God, and began to build the church on the 21st of May, on the feast of Saints Constantine and Helena, and completed it on the 25th of August, on the feast of Saint Apostle Titus, and the entire church building took 70 days, and it became a refuge for Christians." The main building materials were limestone slabs, thin bricks, plinths, and cement. Ten years after its consecration, the church was painted.

The Annunciation Monastery was considered one of the largest and wealthiest in Novgorod. In 1764, the monastery was abolished, and the relics of Saint Theoctist, Archbishop of Novgorod, were transferred to Yuriev Monastery. To this day, only the lower part of the original church has survived. The upper parts of the walls, vaults, and dome were restored in the 16th century. In the 17th century, the windows were enlarged and decorated with ornamental frames. Fragments of ancient painting have survived only in the altar. Restoration began before the Great Patriotic War but was interrupted, and during the war years, when the church was used as a stable and warehouse, part of the frescoes was destroyed, and the remaining ones were covered with soot and dirt. Nevertheless, the painting is of interest as it reflects the characteristics of the Novgorod icon-painting school of the 12th century: graphic quality, flatness, vigorous drawing, and a rich palette. The restoration of the church was carried out from 1959 to 1961 according to the project of architect L.E. Krasnorechyeva. In 1992, the church was included in the UNESCO World Heritage List. In 2009, work was done to update the facades, replace the roof, and cover the dome. The church is a museum object and is part of the Novgorod United Museum-Reserve. Around the church is a small cemetery, and near the southern apse are the graves of Archimandrite Photiy and Countess Orlova-Chesmenskaia, whose remains were transferred here after the opening of their tombs in Yuriev Monastery in the 1930s.