Japara Neighbourhood House Inc. began with the Montrose Village Network and three individual playgroups in 1977. Meetings were held in the Montrose Football/Cricket Pavilion. In 1979, the Shire of Lilydale leased a house for use by community groups before purchasing the current house in 1980.

The house itself was built around the 1930's and has many features characteristic of the period such as leadlight windows and art nouveau cornices and ceiling roses characteristic of that time. The house has undergone several renovations and extensions in order to accommodate the needs of the community and to satisfy modern standards, however it still retains many period features.

In 2001 the Japara Group celebrated 21 years of community service.