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The Institute was built in 1931 with all miners working at the Llay collieries paying a levy of 1d per week towards the cost. At the time of opening, it the biggest institute in the country built with mining funds.
Sports facilities were provided with a football pitch, cricket pitch and 2 bowling greens. During the early years, the institute was only allowed to sell alcohol on the ground floor and women were not allowed into the licensed part of the building. At the outbreak of the World War II, the 4th Battalion of the Royal Welsh Fusiliers were billeted in the institute and remained there until they were sent overseas. The sporting facilities are some of the best in the area and help in bringing a lot of revenue to the institute. A lot of the work to maintain the building is done voluntarily by local residents.

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