The lease of the army land to the golf club had included a proviso to resume the land when necessary. The resumption process was set in motion after the outbreak of World War II and on 8 July 1940, the Army officially took control of the golf clubhouse.
The rest of the course was also taken into army control. The lease had stipulated that the club must remove any building erected on the ground.
However, the army was anxious to take over the clubhouse for its own use. Hence, a series of letters and telephone calls between the various parties established the conditions under which this would occur. On 20 July 1940, a letter from the Golf Club stated that the clubhouse had been erected at a cost of £36,000.
Additionally, it had recently been repainted and the hot and cold water supply had recently been improved and added to. New copper guttering and downpipes had been installed. At that date, the clubhouse was accommodating 25 officers and men.
On 30 December 1940, at a Special General Meeting of Mosman Golf Club, members voted to voluntarily wind up the company. The Commonwealth gave £32,476 to the club to meet its liabilities and for the refund of members 2019 subscriptions. Many members were accepted at surrounding clubs such as Cammeray, Roseville, and Balgowlah. On 1 January 1941, the clubhouse became the barracks for 12 L of C Signals, which was later known as Eastern Command Signals.
After the war in 1946 the Eastern Command Signals vacated the clubhouse and plans were drawn up to convert the building into two flats. An estimate showed that the conversion work would include a partition down the middle of the building, a bath, washing trough, two electric stoves and a fuel copper u2013 all at the price of £352. At completion of the works the clubhouse became known as Married Quarters 43E and 43F, Middle Head, housing a family each side.
This continued until 1997 when Middle Head Barracks was officially closed. Subsequently The Sydney Harbour Federation Trust Act 2001 was enacted to plan the future of former Defence lands around Sydney Harbour, including Middle Head. The rejuvenation of the area continues today and Burnt Orange at The Club House is proud to be part of the history of this very special area.