Markato was built during the British domination of the island in 1834, as the table testifies. It was to be used as a flea market. It was mainly used as a meat market, a fish market and a vegetable market. The villagers brought their goods to the market of the island’s capital to sell them. The butchers used to cut the meat in this location and the fishermen of Kapsali also sold their fish there. In the surrounding area, farmers sold fruits and vegetables. Most of them came from the fertile lands near the villages of Mitata, Viaradika and Kalamos.

The building of Markato was later extended to the west. The building and the surrounding area were used until the 70s. Then, Markato was given to the Agricultural Bank of Greece, after a proposal by the bank’s chairman, professor Adamantios Pepelasis, to renovate it and turn it to a cultural center. This was part of a wider program by the Agricultural Bank of Greece to turn its branches, especially in smaller areas, to centers of funding, culture and education activity, in the assumption that economic development of the rural areas is enhanced by its cultural development and the improvement of the educational level of its inhabitants. Management of the building was then returned to the ex-municipality of Kythira and has been used a cultural center to hold exhibitions.

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