Stadthuys Melaka was built to serve as the official residence for the Dutch Governors in 1650 after they defeated the Portuguese in 1641. This building projected a fine example of Dutch masonry and woodwork skills. This alluring terra cotta building was a four storey building built on a terrace of St. Paul's Hill covering 49200 Sq. ft in area. The name itself is in Old Dutch spelling which literally mean "town hall".

Here in Melaka it is also known as Red Square. Stadthuys Melaka is a reproduction of the former Stadhuis (town hall) of the Frisian town of Hoorn in the Netherlands which existed from 1420 until 1796. Later, in 1976 the Hoorn's former Stadhuis was replaced by a building that is now known as Het Oude Stadhuis (the old town hall). The Het Oude Stadhuis is still found there and was in use until 1977.