Originally built in the mid 19th century and covering a total area of 650 square metres (7,000 sq ft), the former residence of Mao Dun, was the Mao family home for many generations.

In 1984, the building was renovated and extended to cover a total area of 1,731.5 square metres (18,638 sq ft), opening to the public one year later. In 1988, it was listed as one of the Key State Preserved Relic Units and in 1994 was renamed the Mao Dun Museum of the City of Tongxiang.

The house has three exhibition areas: 'Wuzhen, the Hometown of Mao Dun', 'the Way of Mao Dun', and 'the Former Residence of Mao Dun (renovated)'. The present Mao Dun Museum lies to the east of the residence, which was formerly the Lizhi Shuyuan (Aspiration Academy) where Mao Dun spent his early school years.