The Burswood Dome will soon be replaced by parking bays after the State Government today granted approval for the venue to be demolished.
The Dome had been operating for the past few years to allow the Hopman Cup to continue to run while the Perth Arena was being built.
But today Racing and Gaming Minister Terry Waldron confirmed the Crown Perth-owned venue had become too expensive to maintain.
Demolition of the venue is expected to begin in about three weeks.
Mr Waldron said it would make way for more than 1000 ground-level parking bays to ease the shortage at the Burswood complex.
"Annual visits to the resort have almost doubled to nearly eight million people since Crown acquired it in 2004 and that number is expected to grow to 10 million within the next few years," he said.
"Today is a day to reflect on some of the really memorable performances and sporting events that have taken place under the unique pressurised roof."
Over the past 26 years the venue has hosted some of the world's biggest acts, including AC/DC, Beyonce and Michael Jackson.
The first concert was performed by Mick Jagger in 1988 and the last was the Beach Boys in September 2012.
Mr Waldron said the demolition of the Dome would signal the "end of an era".
"There is no use for it anymore," he said.
"The brand new, world-class Perth Arena provides a completely new level of event experience above what the Dome could ever offer."