Originally known as Derby House, it was built in the 16th century for Peter Warburton, a Chester lawyer, who was to later become a county finance manager, MP, judge and a knight. The house then passed to his daughter Elizabeth who remained there until her death in 1627. It is unsure who then lived in the house, until 1831 when it was divided into 3 cottages. It continued to have different owners until American buyers wanted to buy it for it to be shipped to the United States but this was prevented by the Chester Archaeological Society. The house continued to be owned by different people until 15th Earl of Derby brought it to preserve it for the community. It opened as a museum and curio shop in 1911 by E. Booth Jones. The house was passed over by the 17th Earl of Derby to Chester City Council in 1928, which immediately started work on restoration. It is now open to the public and is also available to hire.Stanley Palace is reputed to be haunted, with things such as footsteps being heard, items being moved and apparitions seen.
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