According to official data, the Kotelnich Local History Museum opened in 1923 and has since functioned as a scientific and educational institution engaged in research and the popularization of local knowledge.

The foundation of the first museum exhibition was the natural collection of Anfilov, proposed for display back in 1912. Historical records indicate that the museum has repeatedly closed and reopened its exhibitions, for example, in 1919 and 1921, due to the need for expansion.

Since 1923, the museum has been located in a permanent building on Lenin Street, which is an example of late 19th-century eclectic urban architecture. This building previously belonged to landlady Blinova, who rented out apartments in it.

In 1926, the museum building suffered significant damage from a fire, but by 1930 it was restored, and in the early 1930s, the museum began welcoming visitors again. Today, the museum's main collection includes over 12,000 exhibits, while the scientific auxiliary fund contains about 7,000.

In 2012, as part of the "Kotel of Times" project, the museum's exhibition was completely updated. On the second floor, the Hall of Urban Estates was established, showcasing the life of the merchants and townspeople of old Kotelnich.