Work to demolish the Old Blacksmiths Shop in the Esperance Museum Village commenced on Monday morning.
A crew of two Shire of Esperance workers have begun removing the structure.
The decision to demolish the Old Blacksmith Shop was endorsed by the Esperance Shire Council in the 2016/2017 budget, as maintenance was estimated at $21,720 over the next three years.
According to the Shire of Esperance the shop was built about 1985 and was expanded in 1996 by Graeme Wheeler.
Over the years the building has served a variety of purposes from a pottery shop to a massage parlour.
It was last leased in November 2015 and has been vacant since June 2016.
Since the decision to knock down the structure was made the Shire of Esperance have undertaken a consultation process with village shop tenants.
The building was scheduled for demolition two weeks ago but was postponed, until after the Tour de Esperance cycling event.
Work to remove the structure will take until the end of the week.