The reforms, which saw the hospital's transformation into a day school, also saw the Merchant Company wish to open a school for girls.
In July 1868, the Company applied to Parliament for powers to reorganise their schools and make different use of their endowments to as to make education more widely available.

In February 1871, the Company took over the lease of Melville House in George Square, Edinburgh and used it as the location of the nascent George Watson's College Schools for Young Ladies.
It was renamed to George Watson's College for Ladies in 1877, and to George Watson's Ladies College in 1890.
The reforms, which saw the hospital's transformation into a day school, also saw the Merchant Company wish to open a school for girls. In July 1868, the Company applied to Parliament for powers to reorganise their schools and make different use of their endowments to as to make education more widely available.
In February 1871, the Company took over the lease of Melville House in George Square, Edinburgh and used it as the location of the nascent George Watson's College Schools for Young Ladies. It was renamed to George Watson's College for Ladies in 1877, and to George Watson's Ladies College in 1890.
George Watson's College