Inspired by the British institutes on which they were modelled, the private mechanics’ institutes (MIs) established in Victorian country towns from 1846 pursued an objective of ‘diffusion of useful knowledge’.  Despite government endorsement, the institutes were widely criticised for failing to achieve this objective in all but their provision of libraries.  This paper will argue that MIs adapted their role in emerging colonial towns, contributing to a sense of identity and civic pride among residents and advocating progress through education, technology and good citizenship.  Funded primarily by private subscriptions, the institutes operated libraries, reading rooms, technical classes, lectures and debates.  To raise additional funds, they leased their halls and meeting rooms, providing neutral community spaces and attracting events which entertained and informed their local community.  In spite of their middle-class leanings, and sometimes reluctantly, MIs laid the groundwork for public libraries through adoption of the free library principle of universal access.  The paper will examine the impact of these initiatives in linking residents to European learning and arts, encouraging individual self-improvement and facilitating the establishment of technical schools.  As well as diffusing knowledge, MIs were active agents in developing communities, culture and facilities for all citizens.