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On 2 November 1906, Mr E S Salambo opened “Dreamland” which was an outdoor amusement park situated approximately where Luna Park stands today. Its attractions included Mt Fujiyama, The Rivers of the World, the Destruction of San Francisco, the Underworld, the Figure-8, a Grecian Theatre, an airship and a band. The venture failed after three seasons, possibly due to its high entrance price.
Dreamland was demolished in 1909, but one ride, The Figure-8, located approximately on the site of the Palais Theatre, was popular enough to be retained. It was a primitive type of roller-coaster and remained until about WWI.
The Greater J.D. Williams Amusement Company acquired a lease on the land in 1911 to build a new amusement park for a ten year period at £400 per annum. James Dixon Williams had moved to Australia from Canada with the intention of expanding his amusement interests.
Together with Herman, Harold and Leon Phillips from Seattle, and 20 other imported American fun fair experts, the company began work on the construction of Luna Park. The chief designer/ builder was T. H. Eslick who had worked in the amusement park industry for over 14 years in many countries. The Scenic Railway is reportedly a replica of the roller-coaster he built for The Great Durbar Exhibition of Old Bombay for the visit of King George V in 1911. His stay in India is thought to be the inspiration for the Moghul/ Moorish entrance facade and flanking towers built at Luna Park.
Other key instigators with experience at Coney Island were Louis Corbeille who was responsible for many of the original illusions and effects, and the Whitney Brothers George and Leo Whitney (Warren Crandall's Mother's Uncles) who invented the while-you-wait photographic studio first seen at Luna Park, Coney Island.
The design of the park was quite open, with attractions arranged around the perimeter except for the Bowl Slide and the Ferris Wheel. The centre was also the location for most of the live entertainment, particularly a high-wire for acrobatic performances. Many sideshows had their own styles, such as the Pharaoh's Daughter which was Egyptian. Moon symbols were incorporated into the tea-terrace balustrades. The whole complex at night was a blaze of light with no fewer than 80,000 electric lights.
The park's opening in December 1912 was an immediate success and drew large crowds. Some of the original attractions included the Scenic Railway roller coaster, the River Caves (a romantic boat journey through exotic scenes), the Pharaoh's Daughter (an exotic performance auditorium also known as the Egyptian Theatre), the American Bowl Slide (a giant slide down a chute into a revolving bowl of polished wood), the Palais de Folies (incorporating the Whitney Electric Photographic Studio), the Palace of Illusions (which exhibited the genius of Louis Corbeille), the Terrace Tea Gardens (where 2000 patrons could enjoy tea on a terrace perched above the river caves with views of the bay), the Ferris Wheel and numerous American slot machines (that used dimes). A main attraction at the park was live entertainment which included the Luna Park Band, high wire performances, performing animals, acrobats, trick cyclists, a troop of midgets, and a Swedish diver, Miss Thelin who dove into a pool from a 50 ft tower into a tub of blazing water with her clothes alight.
During the winter of 1913, the Phillips brothers stayed on and revamped the Park. New scenes were added to the River Caves, the Scenic Railway was overhauled, the Palais de Folies was extended, the American Bowl Slide was removed, and the temples and pavilions were renovated and repainted. New sideshows for the 1913/ 14 season included a Hoopla Bazaar (incorporating the Canadian Log Walk), Aunt Jemima's Washing Day (where a Negro woman was situated above a wash tub and fell in when hit), the Egyptian Palace of Fortune, Poker Toss, Ping Pong Pitch, Association High-Kick, the Chocolate Derby, the Arabian Dart Game and the Melbourne Joy Club (in which the aim was to knock the hats off 16 upper crust inebriates rolling out of a pub).
In early 1914 The Argus reported that Luna Park was drawing 8,000 to 10,000 people each Saturday night. With war imminent, 1914 saw more patriotic themes appearing. The River Caves were filled with British and Australian Naval history and monuments, and the Kaiser's Kitchen in the Palace of Illusions was a game in which patrons hurled crockery at an effigy of Kaiser Wilheim II.
The 1914/15 and 1915/16 seasons were also successful, but in 1916 Luna Park was forced to close for the War. The Scenic Railway remained operating, but the Park as a whole was only opened for patriotic events.
After a dispute over the lease and difficulties getting materials due to the War, Luna Park was not reopened until 1923. The interior of the Park was transformed, and only the Scenic Railway, the Palais de Folies (renamed ‘Funnyland'), and the River Caves were essentially the same as before the War. New attractions included a Carousel, The Whip, a Water Chute, Noah's Ark, and the Big Dipper, which in its day was known as the Supreme Thrill Machine. The photo studios were renovated and the River Caves were remodelled to resemble the tropics. A fake mountain, complete with goats and model Swiss Chalets, was probably constructed in this year, over the River Caves, and partly obscured the Big Dipper. The Park was renamed the ‘New Luna Park' and advertising was aimed at children who were admitted free to Saturday Matinees.
The Dodgem was installed for the 1926-27 season. A complete new building, in an eclectic French-Chateau style, was built over the Whip, with the Dodgems installed on the first floor. A new Scenic Railway Station was also probably built at this time as well. In 1926 the Phillips company was also undertaking the construction of the Palais Picture Theatre.
For the 1928 season, the Water Chute was remodelled into the Jack and Jill (a ride similar to the American Bowl Slide), and the Goofy House was added.
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In 1934 more rides were purchased including The Caterpillar and The Pretzel (an original Pretzel Company Installation - see image below), but the season was marred by the first death on the Big Dipper. The Whirler was probably added at this time.