The company also announced that this year it will began construction on a new Ô£30 million auditorium on the site of the current Theatre Royal. The Irish government recently allocated Ô£26 million for the project.

Irish arts minister John O'Donoghue said, "It is particularly fitting that the decision to proceed with the construction of the new theater should be taken now, so soon after the untimely death [in September 2005] of the greatly missed Wexford Festival CEO, Jerome Hynes, who had worked tirelessly to bring the project to realization. The new Theatre Royal will be a fitting monument to his vision."

The new theater will house a rounded, 750-seat auditorium and a smaller event space that will be used year-round. The stage, wing space, and foyer space will all be enlarged.

During construction, the festival will take place in alternative sites. The 2006 festival will be seen at the Dun Mhuire Theatre, also in Wexford. In 2007, the festival will take place at Johnstown Castle, an 1840 Gothic Revival building three miles outside the town.