The Peace Memorial Hospital was built by public subscription as a memorial to those killed in the First World War. It was opened in 1925 by Princess Mary, the Princess Royal, at a cost of £90,000. The new Hospital occupied a prominent position alongside the Town Hall and was further enhanced in 1928 when a War Memorial designed by local resident Mary Bromet and featuring three bronze statutes was erected in front of the façade.
The Hospital was extended in 1937, but by the 1970s its days were numbered. The Bromet memorial was moved to a new site alongside the Town Hall to accommodate road widening, and the Hospital services were gradually relocated to the new Watford General Hospital being built on the Shrodells site. In 1985, the Peace Memorial Hospital was closed.