Reading Cinemas in Dubbo will screen its last movie on April 30.
Staff at the five-screen complex in Riverdale shopping centre received the bad news on Wednesday night, a source told the Daily Liberal on Thursday.
The cinema opened amid much fanfare on June 10, 1999 and attracted "good consistent business for 15 years", the source said.
In November last year Reading Cinemas spent half a million dollars updating projection and sound equipment at the Dubbo complex.
The source said the cinema lease was coming to an end and the company head office had decided the lease would not be renewed.
The cinema will officially leave the premise in June.
Reading Cinema's Dubbo have issued this comment to the public via their Facebook page.
"As reported this morning, we can confirm that our lease expires in June 2014 and sadly, we are vacating. Our decision is driven by the high property Lease cost that significantly impacts the cinemas viability.
Whilst we are very disappointed to be leaving, we wish to sincerely thank the local community and our loyal staff for their support over the many years that we have been a part of the Dubbo community. We will continue to look for alternative premises in Dubbo although that process does take some time."