The Palace is located in Halepa, right next to the house of Eleftherios Venizelos. It was built in 1882, and it is a classic example of a noble house of its time, characterized by simplicity.  In 1898, after the declaration of the Autonomous Cretan Regime, the building became the house of the High Commissioner Prince George, and since then the building has been called "the palace". 
After the departure of Prince George in 1906, the house was assigned to the next High Commissioner, Alexandros Zaimis, who modified the interior and exterior of the building.
In the following years, the house hosted several General Commanders of Crete. From 1957 to 1940, the Army Hospital was hosted there, while during the occupation it was used as a Command Post by the Germans.